AI Rights For Writers: Real World Case Study

The Publishers of The Guerilla Filmmakers Handbooks series have approached us about AI licensing.

Right now it feels like we need to decline their new addendum to the contract.

I don’t think what they are asking, in principle, is unreasonable.

I think they NEED to ask or be left behind.

The basics are this. We agree to let them license the books for AI training and we get 20% of net receipts.

A bit low.

But… the devil is of course in the detail.

We asked ChatGPT to analyse the addendum to the contract and this is what it came back with (and yes, I am aware of the irony here).

Summary of the Addendum

• Parties: Authors Genevieve Jolliffe and Chris Jones and Bloomsbury Publishing Plc.
• Purpose: Expands the existing Author Agreement to allow Bloomsbury to use the work in connection with artificial intelligence (AI) technologies, including training and licensing for generative AI.
• Scope of Rights (Clause 1):
  • Grants Bloomsbury exclusive rights to reproduce, adapt, excerpt, and license the work (or parts of it) for AI development, training, support, and use.
  • Applies to both current and future AI technologies.
• Remuneration (Clause 2):
  • Authors receive 20% of Bloomsbury’s net receipts from licensing AI rights.
  • If works are bundled with others, authors get a pro-rata share of the 20%.
• Termination (Clause 3):
  • Even if the Author Agreement ends, existing AI licences remain valid.
• Other points:
  • The rest of the Author Agreement remains unchanged.
  • In case of conflict, this Addendum overrides the main agreement.
  • Governed by the same law and jurisdiction as the main agreement.

Pros of Signing

1. New Revenue Stream:
   • Provides royalties (20%) for AI licensing opportunities, which could become a significant market.
2. Publisher Handles Licensing:
   • Bloomsbury manages AI-related deals, saving the author negotiation and legal hassle.
3. Pro-Rata Fairness:
   • If included in bundles with other works, you still receive a share.
4. Future-Proofing:
   • Covers not only current but also future AI technologies.

Cons of Signing

1. Broad Grant of Rights:
   • You give exclusive rights for AI use, meaning you cannot license your work independently to AI companies without Bloomsbury.
2. Royalties May Be Limited:
   • 20% of net receipts (after deductions) may not be very lucrative compared to direct licensing.
3. Perpetuity of Existing Licenses:
   • Even if you terminate your main contract, any AI licenses Bloomsbury granted will continue indefinitely.
4. Loss of Control:
   • Your work could be used in ways you may not agree with (e.g., training AI models that create derivative works) since the rights are quite open-ended.
5. Unclear Market Value:
   • The real financial benefit is uncertain, as AI licensing revenues for publishers are still evolving.

Bottom Line:
Signing gives you potential income from AI licensing but at the cost of control and exclusivity. If you want to keep the option to negotiate directly with AI companies or retain more control over how your work is used, this agreement may be restrictive.

OK back to me… Thank you ChatGPT.

What does this really mean?

We would be signing away EXCLUSIVE rights (that means we can’t even use our own book content), and FOREVER (even if existing contracts expire), in return for 20% of revenue AFTER they get all their costs for doing it deducted.

So to be clear they get paid buy us to do their work, then they then get 80% of what is left, and they own everything forever.

OK then.

I have no beef with Bloomsbury, they have been great to us, but the practical reality of this deal kinda means we give them everything, forever, and my gut feeling is we would get next to nothing in return. If anything. I may be wrong but I don’t think I am.

Again I understand why they are asking, but exclusive rights, in perpetuity, and after their costs are recouped is starting to smell a lot like so many sales agents deals on past films. And I know those sales agents guys. We are friends on Facebook. I see their Caribbean holiday and golf course photos regularly.

Sad to see that again, the artist is not even at the table. We are under it fighting for scraps.

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