BUSINESS RELATIONS 435
work and treat it entirely as though his own, except that he cannot alter it to the detriment of the au- thor's reputation. But even in "outright" sale, a specific contract is desirable and is indeed necessary if the author is to agree with the publisher to apply for renewal and include the added period in the term.
More usually, the contract between author and "joint publisher is on the basis of a specified royalty — usual adventure " in America, or "half profits," — more common in England, in which case the relation is not that of partnership but of a "joint adventure" terminable on notice unless it is made for a stated time, or for one or more editions, of a specified number of copies, or under other limiting conditions. In such case the expenses of publication may be borne by the pub- lisher, or the author may pay for the plates or for the edition, and receive correspondingly larger return. Unless there is actual or constructive partnership, the publisher, and not the author, is liable for paper, printing, and like accounts. Or the publisher may be simply the agent of the author in manufacturing his book and selling for a stated commission. A con- tract of publication usually implies exclusive right, but an author may contract with several publishers under a license agreement; and on the compulsory license system, often miscalled the "royalty plan," he must permit any publisher, who will pay him the license royalty, to issue the work.
It is by means of the profit on successful books that Risk and the publisher is able to take risks with new books and P'ofi* new authors. It has been said that of five books, three fail, one covers its cost, the fifth must pay a pro- fit to cover the rest. The element of risk in the book business is, in fact, very large; if the author com- plains that his successful book ought not to pay for others' unsuccessful books, he can get over the diffi- culty by taking the risk himself.
