Subsidiary rights: Overview, definition, and example
What are subsidiary rights?
Subsidiary rights refer to the rights to adapt, reproduce, or distribute a work in formats beyond its original form. These rights are often granted to third parties in publishing, entertainment, and intellectual property agreements, allowing them to create new versions of the original work, such as translations, audiobooks, film adaptations, or merchandising.
For example, if an author signs a book deal with a publisher, the contract might include subsidiary rights for the publisher to sell foreign language translations or create an audiobook version of the book.
Why are subsidiary rights important?
Subsidiary rights allow content creators, publishers, and rights holders to expand the reach and profitability of a work by licensing it for new formats or markets. They help:
- Authors and creators earn additional revenue from adaptations and licensing deals.
- Publishers and media companies monetize works beyond the original format.
- Businesses protect their ability to distribute and adapt content globally.
Because subsidiary rights can generate significant income, contracts often specify how these rights are shared, who controls them, and how royalties are paid.
Understanding subsidiary rights through an example
Imagine a novelist signs a contract with a publisher to release a book in print. The contract includes subsidiary rights, allowing the publisher to sell the book’s rights to foreign publishers for translation and to a film studio for a potential movie adaptation. The author may receive a percentage of the profits from these deals.
In another scenario, a songwriter signs a music contract granting a record label the right to license the song for commercials, video games, and movie soundtracks. These subsidiary rights create additional revenue streams for both the songwriter and the record label.
An example of a subsidiary rights clause
Here’s how a subsidiary rights clause might appear in a contract:
“The Author grants the Publisher the exclusive right to license, sell, or otherwise exploit subsidiary rights related to the Work, including but not limited to translation rights, film and television adaptation rights, audiobook rights, and merchandising rights. The Author shall receive [X]% of net proceeds from any such agreements.”
Conclusion
Subsidiary rights allow works to be adapted, licensed, and distributed beyond their original form, creating new revenue opportunities for creators and rights holders.
By clearly defining subsidiary rights in contracts, businesses and individuals can protect their interests, maximize earnings, and ensure that adaptations and licensing deals are properly managed.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.