Harlequin Responds to Mystery Writers on Self-Pub Fray

Harlequin Enterprises’ publisher Donna Hayes, responded today to a letter from the Mystery Writers of America in which the organization threatened to remove the publisher from much of its conference activities because of harlequin’s decision to sponsor a self publishing imprint together with Author Solutions. Hayes responded to MWA Board of Directors member-at-large Frankie Y. Bailey. Hayes’s response was posted on the MWA web site.

After Harlequin’s announcement of its new Harlequin Horizons self-publishing imprint drew heated reactions from the Romance Writers of America and Science Fiction/Fantasy Writers of America, Harlequin quickly renamed the imprint Dellarte Press, removing the Harlequin moniker.

The letter is reprinted here in its entirety.
Dear Ms. Bailey,

Thank you for your letter of November 30 and for the opportunity to address your concerns prior to your board meeting.

Harlequin takes its relationship with the Mystery Writers of America very seriously. In response to your letters, I would like to share our perspective on the changing book publishing industry and Harlequin's recent moves to keep pace with and lead innovation in our market. It is our hope that sharing our point of view will demonstrate our respect for the MWA and explain our motivation behind the launch of Dellarte Press.

Publishing models are changing and Harlequin needs to experiment within those models

We are sure you would agree that today's book publishing industry is undergoing significant transformation. "Mega trends" affecting the industry include, but are not limited to, the questions raised by Google surrounding ownership of copyright, the rise of eBooks as a viable commercial format, and the swell of user-generated content throughout the Internet. Amazon's growing influence in nearly all aspects of book publishing – from a book's conception to its ultimate delivery in a reader's mailbox – can be interpreted as a source of increasing pressure on traditional publishing models.

In the wake of these changes, self-publishing has emerged as a new force in the publishing industry, providing a forum for thousands of authors who would not secure a contract with traditional publishers. According to Bowker reports, 285,000 new titles and editions were self-published in the US last year, a number that exceeds the 275,000 titles published by traditional houses. Harlequin sees the rapid growth in self-published titles, up 132% since 2007, as validation that writers perceive self-publishing as a viable path to literary fulfillment. In recent weeks, Harlequin has heard from countless writers, either directly or via blogs, that self-publishing played an important, positive role in their writing careers. For example, Naleighna Kai, author of best-selling Every Woman Needs a Wife, posted the following in her November 28 blog entry:

"Self-publishing venues have made it easy for authors to get a book into print and into the hands of avid readers. There are a great deal of authors who started on that path and eventually swept into a lane which put them on the New York Times Best-seller's list. Case-in-point, the Romancing the Stone series written by Catherine Lanigan writing as Joan Wilder, was on the NY Times for several weeks, then eventually made into a movie. Robert T. Kiyosaki was turned down by several major houses before he published his own book, Rich Dad, Poor Dad, then hit it big on the NY Times list. Louise L. Hay's self-published book, You Can Heal Your Life, was on the NY Times list for thirteen consecutive weeks. She went on to publish other powerhouses such as Wayne Dyer, Deepak Chopra, Suze Orman, Doreen Virtue, Sandra Brown, Tavis Smiley and many others. And it goes to show that what's in, what's popular, what's perfect to publish with major houses is subjective."

"Self-publish, learn the industry, set some goals, build a name, then spread your wings. The people mentioned in this article inspired me to follow in their footsteps...I'm happy that I self-published first as it allowed me the opportunity to learn and grow."

Harlequin views its participation in Dellarte Press as an opportunity to participate in this space, supporting aspiring authors as they test the publishing waters. We feel compelled to respond to new publishing models and ensure that writers continue to see Harlequin as a leading publisher in the formats most relevant to them and their evolving readers.

Other publishers and writers associations are experimenting with self-publishing

Our competitors' recent moves into self-publishing (e.g., Harper Collins via Authonomy and Random House's past investment in Xlibris), encouraged us to look beyond our traditional publishing footprint. Given that Harlequin is a very small player relative to others in the Top 6 publisher ranks, doing otherwise would be foolish on our part. Fortunately, a number of writers' associations have been supportive of these experiments. We are not alone in our acceptance of self-publishing, as evidenced by the following statement from the American Christian Fiction Writers we received on November 22, 2009 with respect to our Steeple Hill imprint.

"So many of the large publishing houses are extending self-publishing imprints that the boards of the ACFW have been forward-thinkers regarding our ever-changing industry. Because of this, I'm happy to say that I've been assured that ACFW has rewritten their Book of the Year contest guidelines so that authors of Steeple Hill books will continue to be able to enter the contest. In addition, as ACFW Conference Director, I'm pleased to tell you that we welcome the Steeple Hill editors at our conference, and hope that all of you will be able to attend."

We are pleased that the International Thriller Writers association has also taken this view, as communicated to its members in the following recent statement:

"Although we don't plan to make a formal statement at this time, our position is that ITW doesn't intend to get involved in Harlequin's business. In addition, our members who are Harlequin/MIRA authors remain honored and valued ITW members with all the privileges and rights of membership. No ITW members are going to be expelled or denied awards because of actions taken by their publisher beyond their control--that would be contrary to our charter."

Amid the reaction from a small, but vocal, group of authors, it is easy to forget that Dellarte Press represents a small experiment relative to the size of the greater Harlequin organization. It may be worth noting that Ninc [Novelists, Inc., for multi-published authors] has elected to apply its membership criteria to specific publishing programs, not a publishing corporation as a whole. Specifically, Ninc informed us of the following change on November 24, 2009:

"As our Bylaws remain constant, we have amended the more detailed qualifications for membership, listed in the P&PM. These qualifications are now concerned not with the publishing corporation as a whole, but concentrated on the particular program within the corporate for which the current or prospective member writes novel length fiction."

Harlequin believes that its standing within writers' associations should reflect the 1,200 titles that we publish under traditional models each year and not a separate and distinct publishing arm that represents a very small portion of our activity.

We believe in informed choice for writers

We believe that writers are best served when they make informed choices. As such, Harlequin's rejection letter templates will soon be modified to encourage the author to consider the wide range of publishing options now available to aspiring authors including submitting to another house, resubmitting to Harlequin, ePublishing, self-publishing, or working with Dellarte Press.

In her November 18, 2009 article, Maddie James of the Romance Novel Examiner took the view that self-publishing rounds out a writer's available choices:

"Whether an author chooses traditional print publishing, a digital publishing press, or self-publishing, is totally up to the author. The author knows where they are in their career, how they want to move their career forward, and what steps to take to do so. It would be unwise to omit exploring all of the options."

Harlequin wishes to help expand this range of options, alternatives about which writers must be well informed before making decisions. We think that your membership would benefit from improved understanding of these options, in large part because they are not going away.

Harlequin has made substantial modifications to our Manuscript Critique Service and self-publishing programs

On November 9, 2009, Lee Goldberg, chair of your Membership Committee, expressed concerns about the Manuscript Critique Service referenced within eHarlequin.com's writing guidelines content. As of November 30, 2009, our Manuscript Critique Service is no longer available and does not appear alongside the writing guidelines featured on our website.

On the matter of our self-publishing program, we have responded to our authors' concerns by changing the program name so that it is clearly a separate business from Harlequin's traditional publishing programs.

Our request of the Mystery Writers of America

When your board meets to discuss Harlequin's standing with the Mystery Writers of America, we ask that you consider the following:

(a) the inevitable change sweeping through the book publishing industry

(b) the prevalence of self-publishing, a business model already pursued by our competitors, and the growing acceptance of its role on the part of several mainstream writers associations

(c ) the fact that Harlequin publishes 1200 titles per year under our traditional publishing programs, including many writers who are members of your association, and that we do not believe they should be excluded from full status because of a small, separate business line with which we are experimenting

(d) the opportunity for writers to make informed decisions about their publishing options

(e) the modifications that we have made recently to our publishing programs.

With this context in mind, we ask that Harlequin remain on the MWA list of approved publishers. If the MWA decides it cannot recognize Harlequin as an approved publisher at this time, we strongly encourage the MWA to retain Harlequin authors' eligibility for the 2010 awards while we continue this discussion, particularly because their books were published on a traditional platform before Dellarte Press launched. The Romance Writers of America has taken this position, a source of great relief to our writers. In addition, it may be helpful for you to know that the RWA board will discuss this matter in late January and you may wish to consider similar timing.

Thank you for the opportunity to share our view of the evolving book publishing industry and Harlequin's place within it. We hope to have provided useful insight into the innovations driving publishing forward and growing the presence of writers in the marketplace. While self-publishing represents a small experiment within Harlequin's much larger business, we are excited to offer talented writers a range of alternate paths to commercial success and personal fulfillment. I truly believe that we share a common goal of accelerating the careers of mystery writers, today and for many years to come.

Should you wish to hear more from Harlequin on this or any other matter, we would be pleased to cooperate in any way possible. Please let us know if you would find additional information on our publishing activities useful or if you would like me to speak with the Board and/or executive.

Sincerely,

Donna Hayes
Publisher and Chief Executive Officer, Harlequin Enterprises Ltd.

(Editor's Note: We welcome your comments)

Harlequin Changes Self-Pub Imprint Name

After widespread backlash from authors' organizations, Harlequin has changed the name of its new self-publishing imprint from Harlequin Horizons to DellArte Press, and does not mention the imprint on its website.

Harlequin publisher and CEO Donna Hayes said last week that the company would immediately rename Horizons in the wake of objections from Romance Writers of America and other writing organizations.

See more about the issue on this blog or on Authorlink.

Harlequin Self-Publishing Imprint Sparks Controversy

TORONTO (AUTHORLINK NEWS, November 23, 2009)--Harlequin, the world’s leading publisher of romance novels, has raised a firestorm over the launch of its new self-publishing imprint, Harlequin Horizons, in conjunction with Author Solutions, Inc. (ASI), the world’s leading self-publisher. Aspiring authors can now pay $599 to have their work published under the imprint.

In its announcement, Harlequin touted the self-publishing venture as “an accessible opportunity for emerging authors to bring themselves to the attention of the reading public.” But the move has caused outrage in the writing community.

The Romance Writers of America said it will bar Harlequin from favored-publisher privileges at next year's national convention, and the Science Fiction Writers of America issued a statement saying that no titles from any Harlequin imprint would qualify for membership in SFWA. " Mystery Writers of America also indicated it might take similar action, but will give Harlequin a month to answer questions, according to a statement on the SFWA site.

Donna Hayes, Publisher and CEO of Harlequin Enterprises, issued a statement today expressing disappointment that Romance Writers of America first approached is members over the issue rather than "allowing Harlequin to respond or engage in a discussion about it with the RWA board."

In response to the controversy, Ms. Hayes announced that "we are changing the name of the self-publishing company from Harlequin Horizons to a designation that will not refer to Harlequin in any way. We will initiate this process immediately."

Ms. Hayes said that “It is disappointing that the RWA has not recognized that publishing models have and will continue to change. As a leading publisher of women's fiction in a rapidly changing environment, Harlequin's intention is to provide authors access to all publishing opportunities, traditional or otherwise.”

(Editor's note: We welcome blog reader comments on this issue. See this and other news stories updated each Thursday on Authorlink.

Barnes and Noble Heads Off a Stock Takeover?

ADVANCE NEWS BREAK

New York, NY (Authorlink News, November 18, 2009)--Barnes & Noble’s board of directors yesterday approved the adoption of a Stockholder Rights Plan (the "Rights Plan") under which stockholders will receive rights to purchase shares of a new series of preferred stock in certain circumstances.
The new plan comes in the same week that Goldman Sachs reiterated its “Sell” rating on shares of Barnes & Noble stocks when American business billionaire Ron Burkle doubled his stake in the company from 8% to 17%. (See Goldman Sachs Leary of Barnes & Noble Stock)
The Board said in a press release that it adopted the Rights Plan “in response to the recent rapid accumulation of a significant portion of Barnes & Noble's outstanding common stock. The Rights Plan is intended to protect the Company and its stockholders from efforts to obtain control of the Company that are inconsistent with the best interests of the Company and its stockholders.”

Consistent with Barnes & Noble's commitment to good corporate governance, the rights will expire in three years and the Company intends to submit the Rights Plan for stockholder ratification within 12 months.

Under the terms of the Rights Plan, the rights will expire on November 17, 2012. The rights will be exercisable if a person or group, without Board approval, acquires 20% or more of Barnes & Noble's common stock or announces a tender offer which results in the ownership of 20% or more of Barnes & Noble's common stock. The rights also will be exercisable if a person or group that already owns 20% or more of Barnes & Noble common stock, without Board approval, acquires any additional shares (other than pursuant to Barnes & Noble's compensation or benefit plans). If the rights become exercisable, all rights holders (other than the person triggering the rights) will be entitled to acquire Barnes & Noble's common stock at a 50% discount.

The rights will trade with Barnes & Noble's common stock, unless and until they are separated upon the occurrence of certain future events. Barnes & Noble's Board may terminate the Rights Plan or redeem the rights prior to the time the rights are triggered. Further details of the Rights Plan will be contained in a Form 8-K to be filed with the Securities and Exchange Commission.

Barnes & Noble, Inc. (NYSE: BKS), the world's largest bookseller and a Fortune 500 company, operates 774 bookstores in 50 states.

Justice Department Continues to Probe Google Settlement

The revised Google settlement submitted to Court this past Friday is not likely to end the fight over the case, according to The Wall Street Journal (November 16, 2009, p.B1).

The most recent revisions would allow Google to distribute millions of digital books online, but would cut the number of works covered by the settlement by at least half by removing millions of foreign titles.

At issue, however, is whether it is fair to let Google distribute books whose legal rights owners haven’t been identified—called orphan works.

The Justice Department had asked U.S. District Court Judge Denny Chin to delay a hearing until lawyers for Google, Inc., the Association of American Publishers and Authors Guild, who designed the settlement, addressed its concerns. According to The Journal, the Justice Department remains concerned over the fact that the settlement gives Google immunity from lawsuits related to orphan works, a practice that may be anticompetitive. The department is expected to file its reaction to the modified agreement by early next year.

The Justice Department told The Journal that the department is reviewing the revisions and that its investigation into the settlement is “on-going.”

The new settlement keeps the same structure, but makes a number of changes, including adding more pricing options to address concerns about potential price fixing, and clarifying what sort of services Google can offer related to digital books.

Judge Chin is expected this week to set a timetable for objections to the settlement’s modifications.

Waldenbooks to Downsize in 2010

ANN ARBOR, Mich. (Authorlink News, Nov. 5, 2009)—As part of Borders Group’s ongoing strategy to right-size its Waldenbooks Specialty Retail segment and emerge with a smaller, more profitable mall chain in fiscal 2010, the retailer will close approximately 200 mall stores in January, leaving approximately 130 mall-based locations open. A list of mall stores expected to close is included in this news release and has been posted at www.borders.com/waldenstorelist. The list is not final and is subject to change pending finalization of agreements over the coming weeks. Importantly, today’s announcement regarding the mall business does not include Borders superstores or the company’s seasonal mall kiosk business, which includes over 500 Day by Day Calendar Co. units, among other mall-based retail concepts.

“America has a number of malls that continue to do well and draw customer traffic even in the current economy,” said Borders Group Chief Executive Officer Ron Marshall. “We believe there remains an opportunity to profitably operate a much smaller Waldenbooks segment that complements our core Borders superstore business and continues to serve readers in their communities. Through this right-sizing, we will reduce the number of stores with operating losses, reduce our overall rent expense and lease-adjusted leverage and generate cash flow through sales and working capital reductions.”

As long as the stores remain open, all will honor previously purchased gift cards, and gift cards can continue to be used in any Borders or Waldenbooks location or online at Borders.com. There will be no change in member status for customers who joined the Borders Rewards customer loyalty program at locations slated to close.

Stores that remain open will be integrated into the Borders superstore computer system, an investment Borders Group is making to merge all stores to a single platform. This is expected to produce operating efficiencies as well as benefits for mall shoppers, including enhanced store staff capabilities to search for and fulfill customer requests.

With the store closings in January, approximately 1,500 positions—the majority of which are part-time jobs—will be eliminated. Employees have been informed of the right-sizing plan and efforts will be made to place qualified individuals in other positions within Borders Group. Displaced employees will receive severance.

The mall-based right-sizing initiative has been ongoing at Borders Group for a number of years as the retailer has closed underperforming Waldenbooks Specialty Retail stores annually as part of its overall turnaround strategy. The company shuttered 112 stores in the segment in fiscal 2008 and from fiscal 2001 through 2007, closed an average of 66 stores per year within the Waldenbooks Specialty Retail segment.

About Borders Group, Inc.
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a leading specialty retailer of books as well as other educational and entertainment items. The company employs approximately 25,000 throughout the U.S., primarily in its Borders® and Waldenbooks® stores.

Steve Rubin Named President and Publisher of Holt

NEW YORK, NY (AUTHORLINK NEWS, October 27, 2009)-- Stephen Rubin, the former publisher-at-large at Random House, has been named president and publisher of Henry Holt & Company, a division of Macmillan publishing, it was announced today by Macmillan CEO John Sargent. Rubin succeeds Dan Farley, who will now exclusively oversee Macmillan Children’s Publishing Group. Both men will report to Sargent.

Rubin, 67, had stepped down from the Random House Doubleday imprint which underwent restructuring last December. He had served for the past seven months as publisher-at-large of Random House, where he worked closely with authors including Dan Brown, John Grisham, Pat Conroy and Bill Moyers.
Dan Farley had been leading Holt since February 2008 when the previous president and publisher, John Sterling departed.
In a media statement, Rubin said he plans to publish books "that bridge the gap between commercial and literature. I believe that Holt is the perfect place to do this, given that its sister companies are the distinguished Farrar Straus and the powerhouse St. Martin's Press." Rubin also said he was eager to "develop a tight, powerful focused list."

While at Doubleday/Broadway, Rubin was called “the expansionist publisher.” He used the company’s riches amassed from The Da Vinci Code (and A Million Little Pieces) to keep the business growing in a downsizing era.

Rubin had spent his entire twenty-six year career at Random House and its predecessor companies and divisions. For fifteen years, until December 2008, he was President and Publisher of Doubleday and later the Doubleday Broadway Publishing Group. Prior to that, he was Executive Editor and Publisher and Editor-in-Chief at Bantam Books in the eighties, and the London-based former Chairman of the Transworld U.K. division.

Privately-owned Macmillan Publishers Ltd, with over 7000 staff operating in more than 80 countries, is held by Verlagsgruppe Georg von Holtzbrinck, based in Stuttgart, Germany. Macmillan is one of the largest and best known international publishing groups in the world, with divisions in the USA and UK.

The US group includes Farrar Straus and Giroux, Henry Holt & Company, W.H. Freeman and Worth Publishers, Palgrave Macmillan, Bedford/St. Martin’s, Picador, Roaring Brook Press, St. Martin’s Press, Tor Books, and Bedford Freeman & Worth Publishing Group.