In other words, if costs change, royalties should be adjusted, one way or the other. Read Electronic Publishing and the Potential Loss of First Serial Rights. This article is intended to merely point out some, if not all of the areas of a traditional book publishing agreement in which electronic rights may become an issue. It is the wise publisher who examines its standard agreement to see if, or how, it covers these issues. It is the wise author who reads the standard agreement submitted to see if, or how, it covers these issues.
Clarity is in the best interests of all parties to a contract.
Uncertainties are the makings of disputes and, in the worst case scenario, to expensive litigation. Poorly drafted agreements are the fodder for such scenarios. This article is not intended as a substitute for legal advice. The specific facts that apply to your matter may make the outcome different than would be anticipated by you. You should consult with an attorney familiar with the issues and the laws.