Um, what's a 'subsidiary sale'?

[CeriseNoire]

I'm going over some paperwork, and that's the only thing that's got me stuck. So, in plain English, what are subsidiary sales?

 

[BlackShanglan]

What's the context? It sounds like some sort of trade term - possibly accountant? Does anyone here speak accountant?

I think I've heard of this in the context of marketing/royalty agreements. If I buy the rights to a motion picture from you, for instance, I might term things like toy merchandizing fees and DVD sales "subsidiary sales" to the box office take. But that's just a hazy recollection.

Shanglan

 

[MagicaPractica]

I'm going over some paperwork, and that's the only thing that's got me stuck. So, in plain English, what are subsidiary sales?

Well, in the context of power companies, I know a subsidiary is a smaller company held by a large holding corporation. Therefore, it would seem to be the sale of a smaller portion of something. Without the context though it's kind of hard to know whether this is jargon particular to the industry in which it is being used.

If it is in publishing, perhaps has to do with the different rights that can be sold off, such as paperback, hardcover, foreign rights etc? Though I didn't find it in Writer's Market.

 

[CeriseNoire]

It's in the context of a publishing contract.

It says that in addition to the payment agreed upon, "the Author shall have right of approval on all subsidiary sales over $1000, and be paid 80% of all income the Editor receives from such sale."

 

[Lisa Denton]

I think BS is right, that the term is also used in trading stocks and (hiding profits/losses etc) and other industries and changes having to do with what industry. Probably getting extremely complicated when having to do with royalties etc.

In plain english (with a texas accent) for instance, in straight marketing sales.

If I was a dildo wholesaler, and you wanted to sale some, and you had a party and sold 150 of the extra large vibrating doubledongs, then on my paperwork it would list that 150 was subsidiary sales. Meaning that you was responsible for collecting correct state taxes and stuff like that. Also, by it being a subsidiary sale, if you erroneously guaranteed that they was safe to use underwater, I would not be responsible for hospital bills, you, the subsidiary, would be.

Hope this helps.

 

[Guest]

It's in the context of a publishing contract.

It says that in addition to the payment agreed upon, "the Author shall have right of approval on all subsidiary sales over $1000, and be paid 80% of all income the Editor receives from such sale."

Maybe I'm just paranoid, but what about sales under $1000? Does the author get paid?

If not, the Editor would better off selling the work for $999 and getting $999 for their efforts, than selling it for $1000 and getting $200 and perhaps having the author reject selling of your tender love story to the Child Love Newsletter.

 

[CeriseNoire]

Maybe I'm just paranoid, but what about sales under $1000? Does the author get paid?

If not, the Editor would better off selling the work for $999 and getting $999 for their efforts, than selling it for $1000 and getting $200 and perhaps having the author reject selling of your tender love story to the Child Love Newsletter.

The subsidiary sale thing is in addition to the payment the author receives for the story. Besides, all rights covered in the contract are non-exclusive, and copyrights remain solely with the author.

Lisa: Thanks. Since I'm not the subsidiary, I don't have to worry about liability.