Publication Rights Clearinghouse in Library Hotline

The following is distributed with the permission of Library Hotline, a weekly newsletter published by Library Journal and School Library Journal. Library Hotline editor Susan S. DiMattia, can be reached at 203-322-9055 (phone) or 203-968-9396 (fax).  

Irvin Muchnick
Assistant Director
National Writers Union
<irvmuch[_at_]netcom.com>  

PUBLISHED IN LIBRARY HOTLINE
April 22, 1996  

WRITERS UNION, UNCOVER VENTURE
PAYS AUTHORS DIRECT ROYALTIES   In what appears to be a major shift in the copyright clearance process, the UnCover Company and the National Writers Union (NWU) have announced the creation of a transaction-based writers' royalty system for electronic media. Under the agreement, the NWU will clear copyrights and distribute royalties directly to writers who retain copyright to their work when it is delivered by FAX to UnCover customers. To handle the royalty system, NWU has formed Publication Rights Clearinghouse (PRC) in Oakland, CA. Both NWU members and nonmembers are eligible to enroll.  

"This exciting arrangement with the National Writers Union uses existing technology to make sure creators receive a fair share of the revenue from the emerging information industry," said Rebecca Lenzini, president of CARL Corporation, the corporate creator of UnCover. Lenzini told *Hotline* that writers get a "wake up call" when they log on to UnCover and see how often their works are requested and realize that what they are receiving in royalty payments from publishers does not reflect that level of use.  

Isabella Hinds of the Copyright Clearance Center (CCC) agreed that the UnCover/NWU deal is a major departure from current practice, reflecting the aggressive role authors are taking. Hinds says CCC officials have met with the NWU board to explore ways in which CCC's expertise might support PRC's goals. Hinds explained that in the academic market, where CCC works with permission series for course packs and similar applications, authors retain copyright and there is no confidentiality concern among users of the end product. The corporate market presents a different challenge to CCC. Companies don't want the outside world to know which specific articles their people are reading, for competitive intelligence reasons. The concern of the CCC is to work successfully with authors but at the same time to talk about issues in the marketplace, Hinds concluded.  

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