There are four types of royalty software;
1. Royalty Software
Royalty software calculates royalties owed to royalty recipients (authors, artists, etc.) and generates royalty statements.
- In a batch process solution sales are imported into the royalty software, royalties are calculated, statements are generated and your accounts payable with the amounts owed to the royalty recipients.
- In a real-time solution royalty expenses and liabilities are calculated and the general ledger is automatically updated as each sales transaction is processed.
For very large English language publishers the leading royalty solution providers are; Klopotek, Publishing Technology, Real Software Systems, and Virtusales. These solutions are highly scalable and powerful. These solutions can process millions of sales transactions for hundreds of thousands of ISBNs.
Medium sized publishers can select from over 23 solutions. This listing includes royalty only solutions, hosted solutions, integrated solutions and royalty modules that integrate with your accounting solution. In this market niche there are no solutions that dominate the market.
For startups and small presses the leading solution is Easy Royalties. Their client list includes publishers that have 10 to over 1000 titles.
2. Rights Software
Rights software helps your market subsidiary rights to other companies and collect inbound rights income due to your company.
- Blue Press publishing wants to sell rights to their new book Catalicious. Rights software tracks whom you have contacted, what you have sent them and what offers were made. Once a sale is made it tracks the amounts due to your firm and alerts you if the buyer is past due with a promised sales statement or royalty check.
3. Permissions Software
Permissions software tracks the usage rights; permissions, that a publisher grants and receives.
- A publisher may grant permission for another publication to use a quote, a chart, or an excerpt in their publication.
- They may grant a professor the right to reprint a chapter from a book.
- A publisher may ask another publication for permission to include some of their content in the publisher’s works.
Many publishers outsource permission sales to the Copyright Clearance Center’s RightsLink product. This online portal manages permission requests, republication requests and promotional purpose reuse request.
4. Sales Data Normalization
Sales data normalization software accepts vendor sales files and exports them in a standardized format. This software also validates the sales data. It checks for valid product codes (ISBN’s for book publishers) and valid prices. RoyaltyShare is the leading vendor of sales normalization software in the publishing industry.