The Publishing Contract Clauses That Could Cost You Your Book

As I always say, one of the best ways to spot a bad publisher is to read their contract. Nobody wants to wade through dry legal jargon, but that fine print reveals—in its roundabout way—exactly what kind of company you’re dealing with.

My number one piece of advice for authors—aside from never accepting Amazon’s free ISBN—is this: read every contract carefully before signing.

Publishing agreements are often packed with sneaky traps that can leave you stuck if you don’t know what to watch for.

But don’t worry—I’ve got you. Below, we’ll break down the most common red flags to look out for.

1. Rights Grab Clauses

Rights grab clauses are deceptive contract provisions that give publishers way too much control over your work—sometimes forever. These are often buried in legal jargon, making them easy to overlook.

Here are some of the most dangerous offenders:

1.1 All Rights, Forever (a.k.a. “Perpetual Rights”)

Some contracts try to claim all rights to your book, in every format and media, forever. That means the publisher—not you—owns your work, and you may never get it back, even if they stop selling it.

Let me just say how ridiculous that is. Why does a publisher need that much control over your book? Unless, of course, they don’t have your best interests in mind.

And get this—even if the company goes out of business, they’d still own your rights. Shouldn't those rights automatically revert to the author? 

At Seerendip Publishing, you always keep 100% of the rights to your manuscript. And we like it that way. We want the pressure of knowing you can pull your manuscript at any time. Not that we expect you to—but it holds us accountable. Plus, it’s your book. You should want to work with us—not feel stuck with us. And hopefully, you’ll be so happy with our service you will tell your friends!

Here’s an example of a “perpetual rights” clause you might see in a shady contract (you’ll never see this from Seerendip Publishing):

“Author grants Publisher exclusive rights to publish, distribute, and exploit the Work in all languages, formats, and media, existing or yet to be invented, in perpetuity.”

If you sign something like that, you’re giving your book away. You might as well toss your only copy out of a plane window—you’re not getting it back.

And if you’ve already signed something like that...I am so sorry.

Why This Is a Huge Problem

You lose control. Even if the book goes out of print, you can’t republish it elsewhere.

You can’t renegotiate later. Even if the book becomes a bestseller, you’re locked in.

You’ll have no say in adaptations. If it becomes an audiobook, translation, or even a movie, you might not be consulted at all.

Could you imagine if your book became a movie—and you had zero input?

If you publish with Seerendip Publishing, though, you’d be extensively consulted on any adaptation. You’d be in control—because it’s your story, and you can pull it any time.

Final Thoughts on Rights Grab Clauses

If anything in a contract feels like it’s taking too much control, ask questions. If a publisher won’t clarify or refuses to negotiate, that’s a red flag.

Always protect your rights—because once they’re gone, getting them back is nearly impossible.

At the very least, look for contracts that limit rights to specific formats (print, ebook, audiobook) and territories (e.g., English-language, North America only), and that include a rights reversion clause (like if your book sells fewer than X copies per year, the rights return to you).

But if you’re with Seerendip Publishing, you won’t have to worry about any of that—because you keep all your rights, in every format, regardless of how many books you sell.

2. Blanket Media & Adaptation Rights

Here’s a trick some bad publishers pull: they sneak language into the contract that gives them rights to your book’s movie, TV, audiobook, and merchandise adaptations—even if they have zero ability to do anything with those rights.

Example Clause:

“Publisher shall have the exclusive right to produce and license adaptations of the Work, including but not limited to film, television, stage, interactive media, and merchandise.”

Sounds fancy, right? But here’s the problem: most publishers don’t have the connections to make those deals happen. They’re not pitching your story to Netflix. They don’t know anyone at HBO. So what happens? Those rights just sit there, locked away—and you can’t do anything with them.

Worse still, if your book takes off, and a production company does come knocking, you won’t be able to negotiate directly. You already handed those rights over to someone who can’t use them, and now they’re in the way—standing between you and your villain’s bobblehead.

It’s a sneaky way for a publisher to hold onto your work and limit your future opportunities.

The Solution:

Only grant book-related rights—print, ebook, audiobook—unless the publisher has a proven track record of selling media rights. And even then, it should be a separate conversation, not buried in your main contract.

Bottom line: Always retain your adaptation rights unless there’s a separate, fair negotiation.

Now comes the part where we need to talk about our contract…

Why Seerendip Publishing Holds Media & Adaptation Rights—And Why That’s Good for Authors

At Seerendip Publishing, we do include adaptation rights—film, TV, merchandise, and more—in our publishing contract. That might raise a few eyebrows after everything I just said above, so let’s talk about why we do this, and more importantly, how it’s structured to protect you.

Don’t worry—we’ve built in a simple, low-drama escape hatch in case you ever need to take those rights back.

Why We Include Those Rights

We’re not Hollywood agents or merchandise moguls. What we are committed to is creating opportunities for our authors. If your book takes off and we get a chance to pursue audiobooks, foreign translations, or even media rights, we want to be able to move fast—and help make those deals happen with you, not around you.

Having those rights in place from the start means:

We can say yes when opportunity knocks. We can negotiate on your behalf without legal delays. You don’t have to manage complex rights deals on your own.

We also promise to notify you and involve you as much as possible before anything moves forward. We want your input. After all, it’s your story.

But We Don’t Want to Control You!

Let’s be honest—not every publisher acts in good faith. Some grab rights and sit on them forever. That’s not us.

We’ve built a clear, affordable buy-out clause right into our contract. If you ever want to reclaim your media or adaptation rights, you can—just pay our buy-out fee of $1,000 plus any applicable royalties, and that’s it. We believe that amount reflects the real cost of the average project we put together—editing, layout, cover, etc.—and we think it’s a fair ask if you want to make a clean exit. We wanted our escape clause to be something authors could use if they ever felt the need.

The only reason we included this clause was to protect the work we put into each book—not to trap anyone. This structure protects us in situations where, for example, a book suddenly gains massive traction and we’re ramping up our marketing efforts—only to have the author decide to pull out. We want to make sure there’s a fair way to recoup the time, energy, and resources we’ve invested, while still giving the author a clear and reasonable exit path. Think of it as a pause button—a moment to take stock and make sure everyone is truly ready to move on.

And truthfully? If you ever felt like you were losing control, all you'd have to do is say so. The idea that we’d try to make a movie out of your story without your permission—while you still own 100% of the manuscript rights—is, honestly, a bit far-fetched. We never own your story. Period.

Our Philosophy: Rights with Respect

We believe media and adaptation rights should work the same way as publishing: collaborative, flexible, and fair.

Holding these rights while we’re under contract gives us a chance to open doors on your behalf—but always with your permission and participation. And because we also offer a clean way to take those rights back, they still ultimately belong to you.

We’re in the business of empowering authors, and we want your experience with us to be so great that you’re excited to tell your friends.

Transparency is a core value at Seerendip Publishing. We only ask for those rights so we can advocate for you—and we’re always open to negotiation. If you want us to adjust your contract before you sign, that’s fine. But if we don’t have the rights in writing, we won’t be able to help you pitch those other formats at all.

3. First Right of Refusal

(a.k.a. “They Own Your Next Book, Too”)

Now here’s a weird one.

The first rights of refusal clause force an author to offer their next book to the same publisher before they can pitch it anywhere else. Sounds a little possessive, right? Imagine writing the first book in a series, being disappointed with your publisher’s efforts, and then finding out you’re required to let them take a shot at the sequel—even if you’re ready to walk away.

Here’s an example of what this might look like in a contract:

“The Author agrees to submit their next Work of a similar nature to the Publisher, who shall have the right of first refusal.”

So what’s the issue?

The publisher doesn’t have to accept your next book—but you still have to wait for their decision.

Some contracts even require multiple submissions, potentially locking you into a long-term deal with someone you no longer want to work with.

If you do stay, you might be stuck under the same bad contract terms.

The solution: Avoid this clause entirely—or at the very least, limit it to a single work and include a firm decision deadline (e.g., 30 days). That gives them a fair shot without holding you hostage.

To clarify further what is important when it comes to “Exclusive” clauses is that the publisher shouldn’t have broad or vague exclusivity. Some reputable publishers do ask for the right of first refusal or even series exclusivity, especially for sequels. But the problem lies in broad or vague exclusivity, not as much in the concept itself.

However, just to clear the air: Seerendip Publishing does not have this clause in our contract—and never will.  Remember, in honest publishing, a publisher wants to sell one book. They aren’t buying you.

Each book is its project. If you want to publish your next book with us, that’s amazing. If not, we’ll wish you well. No strings attached.

4. Non-Compete Clauses

Most of us have probably at least heard of non-compete clauses—but in publishing, they can be downright career-killers.

These clauses can block you from publishing any book that might “compete” with the one you’re signing over. Depending on the wording, this could mean:

No publishing another book in the same genre

No sequels or spin-offs

No publishing under your name for a set period

No taking a different book to another publisher if it appeals to a similar audience.

Think about how insane that is. Why shouldn’t you be able to write a sequel or release another book? Worst-case scenario, you “compete” with yourself—but what publishers with clauses like this fear is losing control (or losing money).

Here’s an example of the kind of clause you’ll want to avoid:

“The Author agrees not to publish or distribute any work that is substantially similar in subject matter or genre to the Work for five (5) years.”

The problem? “Substantially similar” is intentionally vague, and that kind of language can block you from writing anything in your genre. Even self-publishing would violate this kind of clause—effectively freezing your career.

The solution: Remove it entirely. If that’s not possible, limit the time (e.g., 6 months max) and clearly define what “similar” means. If you’re writing a vampire romance, it shouldn’t bar you from writing sci-fi.

Let me say this clearly: You will NEVER find a non-compete clause in a Seerendip Publishing contract. We believe authors should keep writing, keep creating, and keep building their audience—period.

Want my advice? Don’t ever sign a contract with a non-compete clause unless it’s clear, narrow, and very temporary.

5. Low (or No) Royalty Ebook & Audiobook Rights

Another common trap: publishers retain the digital and audio rights—but offer dismal royalties in return.

Example clause:

“Publisher shall retain the exclusive right to distribute the Work in digital and audiobook formats, with the Author receiving a royalty of 10% of net proceeds.”

Here’s why this is a problem:

“Net proceeds” means they deduct expenses first—so your cut could be pennies if you don’t have a high enough royalty percentage.

They control those formats, but may never do anything with them.

You can’t self-publish or shop those rights elsewhere.

Protect yourself by:

Negotiating a higher royalty rate.

Setting a time limit—e.g., if they don’t produce an audiobook within 12 months, rights revert to you.

Retaining those rights unless you trust the publisher to use them.

What Seerendip Publishing Does Differently: Yes, we retain the rights to all formats of the book—including audiobooks—but here’s the key difference:

We offer a flat 25% royalty across all formats.No fuzzy math. Just you getting your cut. 

And we go further: If you want an audiobook produced, we’ll give you options. Choose from one of our voice actors on retainer, and if you love one, great—we’ll handle the rest. Don’t like the choices? No problem. You’re welcome to hire your narrator and send us the finished files, and we’ll make sure it gets listed on Audible for you.

Plus, remember: our contract includes a clear and affordable buy-out clause that gives you control if you ever want to walk away. That’s how we protect our authors—by giving you freedom and support.

6. No Clear Rights Reversion (a.k.a. “You Can’t Get Your Book Back”)

This one is scary. Even if your book stops selling—or your publisher stops promoting it—some contracts let them hold onto your rights forever. Yep, you read that right.

Take a look at this example clause:

“Publisher retains exclusive rights to the Work for the full term of copyright.”

Here’s why that’s a problem: Copyright lasts for your entire life plus 70 years. That means your book could be locked up for a full century—even if it’s no longer in print or actively being sold.

Sometimes a book stops selling because the market shifts—and that’s okay. But too often, it’s because the publisher gave up on it. And yet, they still won’t give the rights back. That’s not just unfair—it’s bad for your creative future. 

The fix? Insist on a rights reversion clause in any contract you sign. This clause might say something like:

If sales fall below X copies in a year, rights revert to the author.

If the book is out of print for more than X months, rights revert automatically.

If the publisher goes out of business or fails to uphold basic marketing/promotional duties, you get your rights back.

What Seerendip Publishing Does Differently: We’ve already touched on this, but it’s worth repeating: At Seerendip, you can request to end the agreement at any time.

Just send us a written notice and pay a very reasonable buyout fee (based on the amount of publishing work already completed). Once that’s done, all rights—including print, ebook, audiobook, and any other formats—revert fully to you. No hard feelings. No waiting years. No begging.

This ensures that you stay in control of your work. Always.

7. The $20,000 Buy-Out Trap

Some scam publishers sneak massive buy-out fees—sometimes $20,000 or more—into their contracts. Why? Because they’re betting you won’t read the fine print. Or worse, they’re hoping you’ll feel stuck and won’t fight back.

Let’s be honest: that’s outrageous. Who on earth is going to pay $20K just to get their book back? That’s not a buy-out clause—that’s a trap.

So here’s the rule: Never sign a contract with a buy-out fee that feels exploitative or extreme. If you see anything like that—run.

What Seerendip Publishing Does Differently: We believe in fairness and mutual respect. Yes, publishing a book properly costs money, time, and effort. But our buy-out clause is designed to reflect the real investment we make—not to punish the author for success.

If you ever decide to part ways, our buy-out fee is based on the average actual cost of producing a book through our system. It’s currently set at $1,000 plus any royalties that would have been reasonably earned, depending on how long you’ve been with us.

We include this fee not to trap anyone, but to keep things fair. If we’ve worked hard to promote your book and an exciting opportunity comes along, we just ask for a little mutual respect so we can part ways on good terms.

Bottom line: We want you to succeed—even if that means moving on.And if you ever have questions or want to renegotiate? Just ask. We’re here to help.

Final Thoughts: Protect Your Rights, Protect Your Voice

In the end, here’s what matters most: rights-grab clauses are dangerous—once you sign a bad contract, it’s hard to undo. Always read every line, and if you’re unsure, ask a lawyer to review it first. Make sure there’s a clear, reasonable rights reversion clause that protects you if the publisher doesn’t meet agreed-upon benchmarks. 

However, you shouldn’t need a lawyer just to understand or request termination.

Now, I’ll add a personal caveat: if you’re a new author, it’s important to stay grounded. You’re entering a saturated market—over 2.2 million books are published each year worldwide. A good publisher can help your book stand out, but we can’t promise miracles. As I often say, at Seerendip Publishing: “We can make people see your book—we can’t make them buy it.”There has to be genuine demand for the product.

Also, don’t overlook the fine print. Scam publishers love sneaking in hidden fees for editing, marketing, or vague “services” that deliver nothing. If a contract claims your book will be a “guaranteed bestseller” or promises promotion without specifics—that’s a red flag. Demand clarity. Ask how they’ll promote your book, what platforms they'll use, and when they’ll do it.

At Seerendip Publishing, we share our marketing plan upfront. We want our authors to know exactly what to expect, and then we aim to exceed it. As our team always says: “Under-promise and over-deliver.”

Be cautious of publishers claiming automatic bookstore placement. Shelf space is earned, not given. We’re always working to expand our reach, but we’re honest about our network—and that transparency helps our authors trust that their books are in good hands.

One last warning: beware of author liability clauses. These can unfairly place legal or financial responsibility on you, even for mistakes made by the publisher. Broad indemnity clauses? Run.

At Seerendip, we take accountability seriously. If there's a problem, we work with our authors to fix it. Like we always say: “We don’t forget about you after publishing.”

Ultimately, contracts reveal who you’re dealing with. And, not to go too religious on anyone, as Matthew 7:16 reminds us, “By their fruits you shall know them.”So, here’s your takeaway:

Never sign a contract with:

Massive $20,000+ buy-out fees

Non-compete clauses

Vague or missing reversion rights

Broad liability shifted onto you.

But do remember: Publishers need certain rights to help sell your work. The key is giving them only the rights you’re comfortable with. You are in charge.

At Seerendip Publishing, we’re committed to clear, fair contracts and real author advocacy. You can review our contract anytime, ask questions, and talk to our current authors—we welcome it. Why? Because we’ve got nothing to hide.