Legal Contracts

ACX Royalty Payment Terms and Procedures for Rights Holders Pay-for-Production Deals: Audible Non-Exclusive Distribution Rights

Version 2.0 (02.13.14)

Payment Terms

These ACX Royalty Payment Terms and Procedures for Rights Holders, Pay-for-Production Deals (Audible Non-Exclusive Distribution Rights) ("Royalty Terms") set forth the terms by which Audible will calculate and pay royalty payments owed to Rights Holder in connection with Audible's distribution of any Audiobook based on Rights Holder's Book ("Royalties"), as set forth in the Book Posting Agreement that Rights Holder agreed to when posting the applicable Book on ACX. These Royalty Terms form a part of the ACX Book Posting Agreement. Capitalized terms used in these Royalty Terms but not defined have the meaning assigned to such terms in the ACX Book Posting Agreement.

Audible will pay Royalties to Rights Holder only on Audible Net Sales Receipts (as defined below) it receives from sales of the Audiobook.

Audible will calculate Royalties using the Royalty Rate below. Audible will calculate and report all Royalties based solely on sales of the Audiobook, without combining such sales with sales of other audiobooks produced through ACX.

Royalty Rates for Rights Holders under Pay-for-Production Deals (Audible Non-Exclusive Distribution Rights)

Audible will pay the Rights Holder 25% of all A La Carte Net Sales Receipts and 25% of all Member Net Sales Receipts from sales of the Audiobook.

Royalty Calculation

During the Distribution Period, Audible will pay the Rights Holder the Royalty set above. For purposes of this agreement, Audible Net Sales Receipts consist of: (i) A La Carte Net Sales Receipts (as defined below) for all a la carte sales of the Audiobook, and (ii) Membership Net Sales Receipts (as defined below) for all sales of the Audiobook to customers who are members of one of Audible's membership programs, in each case, during the immediately preceding monthly period. No Royalty will be paid on the transmission or distribution of downloads or other copies of the Audiobook distributed for free for purposes of review, sample, advertising, publicity or promotion, provided that free copies distributed by Audible or its sub-distributors do not exceed the greater of 100 copies or five percent (5%) of the total number of Audiobooks sold by Audible or its sub-distributors during the applicable accounting period.

  • "A La Carte Net Sales Receipts" means the monetary amount received by Audible from a la carte sales of each Unit, less any cash incentives, promotional discounts, sales or use taxes, excise taxes, value-added taxes, duties, and returns.
  • "Membership Net Sales Receipts" means, for each Unit, the monetary amount obtained by multiplying the AudibleListener Allocation Factor (as defined below) by Audible's a la carte price for the Unit at the time the AudibleListener Allocation Factor is calculated.
  • The "AudibleListener Allocation Factor" means the total of all membership sales receipts derived from sales of all content sold by Audible in the applicable accounting period, less any cash incentives, promotional discounts, device subsidies or rebates, sales or use taxes, excise taxes, value-added taxes, duties and returns, divided by the total a la carte value (as determined by Audible's applicable a la carte price for the Audiobook at the time the AudibleListener Allocation Factor is calculated) of the membership sales of all content sold by Audible in the applicable accounting period.

Royalty Statements and Payments. Audible will provide Rights Holder a statement of Royalties, together with a check in the amount of any Royalty due, on a calendar monthly net 30 day basis, commencing with the first full month after the Audiobook is first offered for sale by Audible. If the Royalties owed to Rights Holder for any accounting period are less than $10, Audible will have the right to withhold making a payment and carry such payment forward to the next monthly reporting period. Any ACX royalty statements Audible provides Rights Holder will be considered final and incontestable 3 months from the date the statements are provided by Audible if Rights Holder does not object to the statements within that period of time.