What Should a Publishing Services Contract Include? (Rights, Royalties, Exit Terms)

By Isabella Watson
What Should a Publishing Services Contract Include? (Rights, Royalties, Exit Terms)
The quote looked great. The team was friendly. The sample covers were beautiful. So two years later, you want to move your book to a different distributor, or take it down entirely, and you discover you can't. The company owns the publishing rights. Your royalties pass through them. And leaving costs a termination fee you never noticed.
This happens to authors every year, and almost always for the same reason: the problem was in the publishing services contract all along.
The good news is that a fair contract isn't hard to recognize once you know what to look for. This guide walks you through every clause that matters, shows you what good wording looks like, and gives you a checklist to use before you sign anything.
This article is educational, not legal advice. For significant contracts, have a publishing-law attorney review the agreement.

Why Does a Publishing Services Contract Matter So Much?

Because when you hire book publishing services, you're not handing over a manuscript. You're handing over the business asset you spent years building.
A publishing services contract is different from a traditional publishing contract:
Traditional Publishing ContractPublishing Services Contract
Who pays whomPublisher pays the author (advance + royalties)Author pays for publishing services
Who owns the rightsPublisher licenses rights from the authorAuthor should keep all rights
Who controls the bookPublisherAuthor
Typical termOpen-ended, often life of the bookShould be short, or tied only to the services
That last row is the point. Writer Beware puts it plainly: a publishing service should not ask for rights beyond what it needs to provide the service. If a services contract gets treated like a traditional rights deal, without the advance or the publishing muscle, you're getting the worst of both worlds.

What Rights Should You Keep (and What Can You License)?

This is the most important section of any contract. Read it twice.
Copyright is yours.
The contract should state plainly that you own the copyright to your manuscript, and that nothing in the agreement transfers it. No exceptions.
Publishing rights: limited, non-exclusive, temporary
If the company distributes your book for you, it may need permission to do so. That permission should be:
  • Non-exclusive (you can publish elsewhere too)
  • Limited to the formats they actually produce (e.g., paperback or ebook only)
  • Ending when you say so, with notice
Subsidiary rights: not on the table

Audio, film, TV, translation, and merchandising rights have no place in a services contract. Watch out for vague terms like "derivative works" or "adaptations." Writer Beware flags perpetual grants of subsidiary rights as a serious red flag, even when the license is non-exclusive.

Rights checklist

ClauseFair VersionRed Flag Version
CopyrightAuthor retains full copyrightCopyright "shared" or claimed on "publisher content"
Grant of rightsNon-exclusive, specific formatsExclusive, "all formats now known or later invented"
TerritoryOnly where they distribute"Worldwide" by default
TermEnds on author's written noticeLife of copyright, or no end date
Subsidiary rightsNot includedFilm, audio, translation, "adaptations"

Who Owns Your ISBN, Files, and Cover Art?

This is the part most authors skip, and the part that traps them later.
ISBN
In the United States, ISBNs are purchased from Bowker. Whoever owns the ISBN is the publisher of record. If the company assigns its own ISBN, it controls your book's metadata and listings. Ask for an ISBN registered in your name (or your imprint).
Production files
You paid for them, so you should own them. The contract should promise delivery of:
  • Print-ready interior PDF
  • Ebook files (EPUB)
  • Full cover files (front, spine, back) and the editable source file
Without these, leaving means paying to redo everything.
Cover and image files
Make sure the cover designer has properly licensed any stock images or fonts for commercial use, and that the license transfers to you. A cover you can't legally reuse is a cover you don't really own.

How Should Royalties Be Handled?

The cleanest answer: you should receive 100% of your royalties directly.
Option A: You own the retailer accounts (best)
The book is published through your own Amazon KDP and IngramSpark accounts. The company does the setup work, the money goes straight to you. Nothing to split, nothing to transfer.
Option B: The company distributes for you (acceptable, with safeguards)
If royalties flow through the company first, the contract must spell out:
  • The exact split and whether it is based on list price or net (the difference can be huge)
  • Payment schedule (monthly or quarterly, with dates)
  • Itemized sales statements by format and retailer
  • Your right to audit their records
  • No deductions beyond what is clearly listed
Quick test: if you can't calculate what you'll earn on a single paperback sale just by reading the contract, the royalty clause is too vague.

What Should the Services and Payment Terms Spell Out?

Vague packages are where disputes start. A strong contract reads more like a project plan than a sales brochure.
Scope of work
Every service should be named and defined:
  • Type of editing (developmental, copy edit, proofread) and how many rounds
  • Number of cover concepts and revisions
  • Formats produced
  • Exactly what book marketing includes (with deliverables, not adjectives)
Timeline
  • Start and estimated completion dates for each stage
  • What happens if they miss a deadline
  • How long you have to review and approve each stage
Payment
  • Itemized pricing, not a single bundled number
  • Milestone payments (e.g., deposit → editing complete → design complete → publication)
  • A clear refund policy for work not yet started
  • No required purchase of your own books

What Exit Terms Protect You If Things Go Wrong?

Every relationship has an end point.
What a fair exit clause includes
A fair contract makes ending it simple.
  • Termination by the author on written notice (e.g., 30 days), for any reason
  • Automatic rights reversion. Writer Beware's legal contributors recommend wording that returns all rights to the author automatically on termination, whatever the reason, so an unresponsive company can't hold your book hostage
  • Takedown timeline: the company removes listings within a set number of days
  • File handover: all production files delivered to you
  • Refund of payments for services not yet performed
Exit red flags
  • Termination fees. Writer Beware notes these are easy to miss and are used to pressure unhappy authors
  • "Sell-off" clauses that let the company keep selling inventory indefinitely
  • Termination allowed only if the company breaches the contract
  • Rights that revert only "upon request," with no deadline for the company to respond
  • Bankruptcy of the company with no rights-reversion protection

What Other Clauses Should You Look For?

These aren't headline items, but they matter when something goes sideways.
  • Author approval: final say on edits, cover, title, and pricing
  • Confidentiality: your manuscript isn't shared or used for anything else (including AI training)
  • Governing law and disputes: what state's law applies and where you can file
  • For book publishing USA authors, a US jurisdiction you can realistically reach matters
  • No contradictions: Writer Beware warns that clauses that contradict each other are a major red flag
  • Warranties: you promise the work is yours, they promise their work (images, fonts) is properly licensed

How Do You Review a Contract Before Signing?

Use this 10-point checklist. If you can't tick a box, ask before you sign.
  1. I keep 100% of my copyright
  2. Any rights granted are non-exclusive and limited to specific formats
  3. No subsidiary rights (audio, film, translation) are granted
  4. The ISBN is in my name, or I understand who owns it
  5. I receive all final files and source files
  6. Royalties come to me directly, or the split and schedule are crystal clear
  7. Every service is itemized, with revision rounds and a timeline
  8. Payments are tied to milestones
  9. I can terminate at any time, on notice, with no fee, and rights revert automatically
  10. Nothing in the contract contradicts itself

Where to Get Help

  • Writer Beware (run by SFWA) tracks problem publishers and offers contract commentary
  • The Alliance of Independent Authors (ALLi) provides contract advice and sample agreements to members, and rates services through its watchdog desk
  • A publishing-law attorney for high-value deals. Writer Beware specifically recommends a publishing-law practice, not a general lawyer

What Does a Fair Publishing Partner Look Like?

Here's the honest truth: a trustworthy book publishing agency wants you to read the contract closely. If a company rushes you, avoids your questions, or says "everyone signs this," that tells you more than any sample cover.
Look for a partner who:
  • Shares the full contract before you pay a deposit
  • Answers your questions in writing
  • Is comfortable with you having a lawyer review it
  • Treats your book as your asset, not theirs
That's the standard behind every agreement at Berg Publishers. Our service agreements are written in plain English, so members understand exactly what they're paying for, what they own, and how to leave if they ever choose to.

We'll walk you through our service agreement line by line, answer every question, and give you time. No pressure to sign.

Want to see what a fair agreement looks like? Request a free consultation with Berg Publishers.

The Bottom Line

A good contract proves three things: your rights, your money, and your freedom to leave. Before signing with any book publishing company, make sure:
  1. You keep your copyright and control of your book
  2. Royalties are clear, and ideally paid directly to you
  3. Services are itemized, with timelines and payments
  4. You can exit easily, with automatic rights reversion and no fees
Take one extra hour to read the contract now. It can save you years of frustration later.

FAQs

1. Should I keep my copyright when I pay for publishing services?

Yes, always. When you pay for publishing services, you're hiring help, not selling your book. The contract should state clearly that you retain full copyright and that no ownership transfers to the company.

2. Who should own the ISBN for my self-published book?

Ideally, you. The ISBN owner is the publisher of record and controls the book's listing details. If a company assigns its own ISBN, understand that moving your book later may require a new ISBN and a new listing.

3. Is a termination fee in a publishing contract normal?

No. In a publishing services contract, you should be able to end the agreement with written notice and no penalty. Termination fees are widely considered a red flag, because they can trap unhappy authors.

4. What's the point of a rights reversion clause?

It's the language in a contract that returns any rights you granted back to you when the agreement ends. The best versions make rights reversion automatic, so you don't need the company's permission or response to get your rights back.

5. Do I need a lawyer to review a publishing services contract?

For simple, small agreements, a careful read with a checklist may be enough. For larger investments or a contract that grants rights, it's worth paying a publishing-law attorney. Groups like ALLi also offer contract guidance to members.

Author Bio:

Isabella Watson is a professional content specialist focused on book publishing and author services. She writes and reviews technical and informative content to help aspiring and seasoned authors navigate the professional publishing process. Her work focuses on quality, trust, and hassle-free creative writing.

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Publishing Services Contract: What It Should Include