|
The Organisation
of the Work and Activities of Publishing Associations
A Summary of the seminars
held in Bratislava, Kiev, Almaty and Ulan
Bator in 1999
by
Dr. Grzegorz Boguta
gb@metapress.com.pl
President of Metapress
Sp. z o.o.
also on our website:
The
Polish book industry: Privatized, energetic and getting its act together
by Grzegorz Boguta
(Logos article, 1997)
I wish to thank Piroska Draskóczy,
Iris Klose, Andrzej Chrzanowski, Peter Kilborn and Eric Newman for their
help in preparing the case studies on the Hungarian Publishers' and Booksellers'
Association, Börsenverein des Deutschen Buchhandels, the Polish Chamber
of Books, the Publishers Association (UK) and the Association of American
Publishers.
In addition, I would like to thank Piroska Draskóczy and Ewa Dziedziniewicz
for their help in editing this summary.
Preface
Most industries have national and international
organisations to promote the interests of their members and the industry
as a whole. This is also true for publishing and its related industries.
Due to the specific circumstances and needs of
each respective country, publishing associations around the world differ
in a number of aspects. However, there are certain basic functions and
bodies without which a publishing association would be unlikely to achieve
its goals or operate efficiently.
This summary of a series of seminars organised
by the Centre For Publishing Development of the Open Society Institute
Budapest, The Open Society Foundation in Bratislava, the International
Renaissance Foundation in Kyiv, Soros Foundation Kazakhstan in Almaty
and the Mongolian Foundation for an Open Society in Ulan Bator discusses
these basic functions, and gives examples of their practical implementation
with five case studies.
Topics
1. The Purpose of an Association
2. The Functions of an Association
3. Analysis of the Legal Environment
4. Establishing or Modernising an Association
4.1 Structure,
bodies and working methods
4.2 Finances
4.3 Code of business
relations
5 Relations with Parliament
and Government
6 Case Studies
6.1 Börsenverein
des Deutschen Buchhandels
6.2 The Publishers Association
(UK)
6.3 The Hungarian Publishers'
and Booksellers' Association
6.4 The Polish Chamber
of Books
6.5 The Association of
American Publishers
1. The
Purpose of an Association
- To do what individual companies cannot do
Individual companies do not usually have the capacity, the resources
and/or the expertise to carry out activities that are not directly
related to their commercial activities.
- To serve as a source of information for the industry
Data on the publishing industry is necessary for the work of a number
of governmental organisations as well as the business entities of
other industries.
- To ensure the influence of the industry
In an increasingly competitive environment every industry has to
find effective ways of promoting its interests and ensuring its influence
in all relevant areas.
- To provide a link between the industry and government
An association is an appropriate means
of providing information on the industry and representing its interests
through regular consultations with the government, and also for conveying
information on governmental initiatives back to the industry.
back to topics
2. The Functions of an Association
- Maintaining or enhancing the commercial environment
An association has an important role in ensuring the best possible
economic conditions for the industry by working out and actively promoting
them both among its members and outward.
- Provision of information on and analysis of the industry
As its representative, an association should function as the major
source of reliable information about, and assessment of the publishing
industry. Such information should also be provided in a proactive
way.
- Provision of statistics on the industry
An association should set up a system for collecting data on the
publishing industry to form the basis of industrial strategy, legislative
initiatives, etc.
- A channel for communication between publishers
The association is well suited to the role of assisting publishers
to find partners for certain activities or new projects, it should
also assist in settling any conflicts between its members.
- A channel for communication between publishers and related industries
The association should promote the interests of its members to representatives
of related industries.
- A channel for communication with the international publishing industry
(FEP – Federation of European Publishers, and IPA – International Publishers
Association)
As a national organisation, the association can establish and maintain
contacts and working relations with other national and international
publishing industry organisations.
- A channel for communication between government and the industry
The association should
take a major responsibility for raising awareness of issues for the
industry and ensures that these concerns are taken into account in
all relevant legislation.
back to topics
3. Analysis of the Legal Environment
To assess the legal environment of any specific publishing industry,
the following questions need to be considered:
- Does the national legal system permit
and support the existence of independent trade organisations?
- Is private sector publishing strong
and independent enough?
- Are foreign investors wanted or desirable?
- What recent legislative initiatives
relevant to the publishing industry are there?
- Is there legislation relevant to the
publishing industry, both directly and indirectly (e. g. a commercial
code, a copyright act, a taxation act)?
- Who is the most active party in the
creation of legislation (the president, the government, or parliament)?
- Is governmental (parliamentary) policy
concerning the publishing industry consistent? And if not, has a survey
to indicate inconsistency been prepared and a report submitted to the
government (parliament) with recommendations?
- What is the condition of the publishing
industry in neighbouring countries?
- Who are the legal consultants to the
governing bodies? Are they aware of you? Do you have regular contacts
with them to keep them informed about specific problems in the publishing
industry as well as the current situation of the industry in other countries
of your region?
- Given the legal system, what is the
most appropriate form for the trade organisation (chamber of commerce
or association)?
back
to topics
4. Establishing or Modernising an Association
Essential issues to be decided upon and set out in writing are:
- The regulations (statutes) of the association
The regulations should comprise of at least the following components:
- General definitions: the name and type of
association, the extent of its activity
- Specific terms and definitions: e.
g., publisher, publishing group, parent company, subsidiary, book
club, bookseller, wholesaler, member and membership
- Descriptions of the governing bodies
with relevant definitions
- Description of the executive (administrative)
structure
- Definition of the qualification requirements
for becoming a member
- Structure and schedule of membership
fees
- The not-for-profit nature of the association
No part of the association’s earnings should personally benefit any
private member or individual.
The association should be open
to all persons, partnerships and corporations who have been actively
engaged in the business in the country as a publisher/bookseller
for a year or more.
Corporate membership may
be introduced but a decision will be needed as to whether the parent
or the subsidiary applies for membership.
Consider whether members with
foreign ownership will be accepted.
A definition of associate membership
(without voting rights) will be necessary, including a decision on
whether to accept non-publisher members (without voting rights or
the right to representation on governing bodies).
back to topics
4.1 Structure, bodies and
working methods
- Annual meeting, general meeting of members, or general assembly
As the senior governing body its role will be to:
- Appoint and/or elect the board (council)
of directors and its chair or president
- Consider and vote on the annual budget
- Review the board’s actions and/or resolutions
over the preceding year
- Approve the structure of membership
fees
- Change and/or amend the regulations
(statutes)
- Board (council) of directors
The number of directors needs to be precisely
defined and no director should receive compensation for their services.
The board (or council) should perform
at least the following duties:
- Hold regular meetings in each fiscal year
- Approve the board’s regulations
- Provide an annual plan for the actions
and activities of the board
- Employ the executives (professional
staff) of the association
- Establish both permanent and ad
hoc committees
- Recommend and distribute an annual
report of activities to the members
- A professional executive council
The director of the council should be the chief
operating and administrative officer of the association, acting under
the general direction of the board (council) of directors.
The director should:
- Employ all members of the staff, and supervise
their work
- Supervise the association’s accounting
- Present the annual budget and the membership
fees structure to the board (council) of directors
- prepare and attend all board meetings
Professional staffing is a key factor in the
success or failure of an association.
- Divisions within the association
There should be as many divisions
as the board (council) of directors may determine necessary. There
may also be regional divisions if necessary (due to the size of the
country, atomisation of the members, etc.) and/or subject divisions
such as trade publishers division, educational publishers division,
academic and university presses division, etc.
Membership in divisions should
be open to all regular members of the association.
Divisions should have the power
and the responsibility to create rules for their governance, determine
their concerns and establish programs, hold divisional meetings with
written minutes which should be submitted to the board (council) of
directors.
back to topics
4.2 Finances
- Revenues of the association
The revenues of the association should be derived
primarily from introductory and core fees.
Determination of fees:
- An introductory fee for new members needs
to be determined, e.g. uniform or differential, a fixed fee schedule,
or a formula based on macroeconomic indicators.
- A core fee should be set based either
on a fixed fee schedule or a formula levied against the net revenues
of the members.
- A schedule of minimum and maximum fees
should be formulated and a decision on whether voting rights of all
members will be equal irrespective of the size of their business needs
to be taken.
- A fee structure and schedule should
be prepared by the board of directors and submitted for approval to
the annual meeting.
Other financial resources should be identified,
such as:
- Paid service to the trade
- Seminars and training programs
- Special tasks (surveys) ordered by
the government or any non-governmental organisation
However, it is important that the association
maintains a fully independent position.
This committee should be elected by the annual
meeting and should consist of 5 to 7 distinguished representatives
of member organisations.
The audit committee should perform at least
the following duties:
- An annual financial audit of the association's
operation
- Control the acceptance or rejection
procedures of new members by the board
- Offer general assessment of the activities
of the board (council) of directors
- Recommend removals from membership
to the annual meeting.
Any member may be removed for misconduct, failure to meet or maintain
the qualification requirements prescribed for admission, or after
default in the payment of fees for any annual (or quarterly) period.
back to topics
4.3 Code of business relations
The Code is basically put in place in order
to regulate the business relations between market entities that are
members of the association. The code should be an essential supplement
to the regulations of the association.
The code should define basic terms such as
key market players:
- "Publisher" shall mean any company
or organisation which is engaged directly or indirectly, in whole
or in part, in the creation, production and publication of books,
learned journals, copyrightable types of educational materials, or
computer software, courseware, databases and similar products related
to electronic publishing.
The above definition was taken from the Regulations
of the Association of American Publishers.
The code needs to describe what is considered as unfair commercial
practice, e.g.:
- Publication or distribution of books, periodicals,
CD-ROMs, DVDs, etc. that infringe copyright
- Failure to apply catalogue prices and
the rules underlying their reduction
- Publication and distribution of books,
periodicals, CD-ROMs, DVDs, etc. that do not carry the name of the
publisher, or where the name of a fictitious publisher is offered
- Covert discounts in the form of free
copies and the use of sample copies with an intention to earn money
- Failure to publish information on the
subsidies granted to have the book, periodical, CD-ROM, DVD, etc.
published
- Failure to publish the data of the
legal status in books on legal issues
- Deferred payments due to ill will
- Offering false information concerning
a book, periodical, CD-ROM, DVD, etc. or its market
- Other deliberate acts of misleading
the subcontractor (customer)
The above paragraph was taken from the Code
of Publisher-Bookseller Relations of the Polish Chamber of Books.
The code of business relations needs to refer
to the pricing system.
Terminology:
- Net Price Agreement (NPA): publishers determine
the final price of a publication and give agreed discounts to the
trade (wholesaler and/or booksellers).
- Recommended Retail Price (RRP): publishers
suggest the final price of a publication to be no higher than a specified
figure.
- Free Prices (FP): The final price is
determined by market competition and may differ among sales outlets.
Mutual agreement among publishers and booksellers
on the pricing system is an essential tool for the whole book trade.
The NPA supports smaller independent publishers
against big chains and superstores.
The NPA also supports smaller publishers
against book club publishers.
The RRP is an effective instrument of price
control by publishers with flexible discounting.
FP in the free market means the main drive
for pricing decisions is to satisfy the customer.
In the UK the largest publishing corporations
brought about the abolition of the NPA.
In France the NPA is a powerful mechanism
used against superstore chains.
In Poland the NPA, approved by the Polish
Chamber of Books, is quite often breached by a number of publishers
in co-operation with hypermarkets.
An arbitration committee helps to settle disputes
between members of the association or identifies acts of misconduct,
unfair commercial practice and breaches of the code in general.
It should consist of an uneven number of ‘judges’
appointed from the members of the association by the annual meeting.
Arbitration committee members can select experts to support them by
providing professional advice.
- Consequences of infringement of the code
The following are the only realistic means of enforcing adherence
to the code:
- Removal from the association
- Public disclosure of any infringement
- Boycott
back to topics
5. Relations with Parliament and Government
- Influencing and initiating legal acts related to the publishing industry
or their amendments (consultancy function):
- Attendance at meetings of parliamentary committees
(at their invitation) and/or presenting written motions or opinions
to the committees or the government (through the Ministry of the Arts
and Culture, Ministry of Finance, Ministry of Education, and others)
- the main areas of interest concerned
are:
Taxes (in particular rates of VAT)
Copyright law
Rules on textbook provision for schools
Adjustment of existing regulations
to European Union requirements
Public tender rules (academic textbook
supervision for university libraries)
Book exportation and importation rules,
etc.
- Establishing good, professional relations with members of parliament
and the government
Irrespective of political parties, etc., try to identify those who
'like books', and/or whose political program contains cultural issues.
- Establishing regular contacts with the presidential office
Identify the person/s in charge of culture, science and education,
and establish a regular exchange of information and opinions.
- Aiming to strengthen the industry's influence on parliament, the government
and the president
Usually, election time is the best time to exert influence. After
elections, monitor the fulfilment of election promises.
- The role of specialised legal advisors
Working with legal advisors (university departments and legal firms)
on the issues listed above through: discussion, lobbying, initiating
common plans of action
- Working groups or established subcommittees
VAT and copyright working groups:
For example, the Council of Directors of the Polish Chamber of Books
established two working groups together with other organisations and
individuals to organise and lead action aimed at achieving the desired
goals for VAT and copyright.
back to topics
6. Case Studies
6.1 The Association of American Publishers
Established 1970
No. of members Approximately 200
Governing bodies
General Assembly, annual
Board of Directors (20 members) elected by
the members
President and Chief Executive Office, permanent
Employees managing a professional and support staff
of 31
Professional and Scholarly Publishing Division
School Division
Committees on: Copyright
and Enabling Technologies, Freedom to Read,
Higher Education, International, Test and
Trade
Main activities:
– Lobbying the U.S. government on copyright and censorship
issues and professional education
– Head of Houses meeting at a resort once a year
– Annual meeting of the Professional and Scholarly
Publishing Division
– Committee meetings of the many committees (some
permanent, others ad hoc)
– Approximately four training seminars or
programs a year
Membership fees: Fees are calculated
through a combination of sales revenues/number
of titles and participation in divisions (professional,
international, etc.)
E-mail: ncarew@publishers.org
Website: http://www.publishers.org
Organisational structure
back to topics
6.2 The
Publishers Association (UK)
Established 1895
No. of members 215 – publishers only
Governing bodies PA Council, annual
Management Committee/Officers
Main activities Through the association’s
divisions, which provide sector specific
services and expertise:
The Book Development Council International:
supports the international sales activities
of PA members.
The Council of Academic and Professional
Publishers: campaigns for increased textbook
availability for students, higher standards
of books provision for university libraries, and
respect for copyright in all forms of reproduction.
The Educational Publishers Council:
represents publishers of
school and textbooks and campaigns for proper financial
provision for books in schools and school libraries.
The General Books Council – serves
trade publishers of both fiction and non-fiction
books and is concerned with the consumer
book market.
The Electronic Publishers Forum –
provides support for CD-ROM and on-line publishers
and organises a program of seminars and meetings.
Membership fees
Based on the annual turnover with special introductory rates
for new members
E-mail mail@publishers.org.uk
Website: http://www.publishers.org.uk
Representation of Members
Staff structure
back to topics
6.3 Börsenverein
des Deutschen Buchhandels
Established 1826
No. of members 7028
ca. 2100 publishers
ca. 4800 booksellers
Governing bodies General Assembly,
annual Representatives’ Assembly,
twice yearly; consultative and control functions,
also involves the eleven book trade associations
of the federal states
Executive Committee (President, 3
publishers, 3 booksellers, 1 rep. of intermediate
book trade, chairs of
the 3 specialist sectors [publishing, retail trade,
intermediate book trade]), elected every
3 years
Main activities
– Business-related and cultural mission
– Lobbying, PR, influence on trade-related legislation
– Frankfurt Book Fair
– Friedenspreis des Deutschen Buchhandels
– Leipziger Buchpreis zur Europäischen Verständigung
Enterprises Provision of services offering
practical benefits to the members of Börsenverein
Booksellers Federation (Buchhändler-Vereinigung
GmbH): since 1947; publishing company of
the Börsenverein, shareholders are the eleven
state book trade associations
Clearing House of the German Book Trade (Buchhändler-
Abrechnungs-GmbH): since 1922; clearing house
for the payment transactions of publishers and booksellers
Computer Service Centre for the Book Trade
(Rechenzentrum Buchhandel GmbH): since 1972; computer
and information centre for the book trade using electronic
data processing technology
Loan and Guarantee Partnership for the
Book Trade (Buchhändlerische Kredit-Garantiegemeinschaft):
arranges and guarantees bank loans for booksellers
(debtors) and publishers (creditors)
Exhibitions and Fairs Ltd. (Ausstellung-
und Messe-GmbH): organises the Frankfurt
Book Fair, participation of German publishers
at numerous fairs, and German book exhibitions
as well as seminars and workshops
Publication Börsenblatt für den Deutschen
Buchhandel
Membership fees
– from 588 DM to 23,304 DM a year according to the annual
turnover of an enterprise. 21 categories of the scale
of a member’s business are defined
– starting below 200,000 DM of the annual turnover
up to above 144,800,000 DM
– Equal voting rights of all members irrespective
of their categorisation.
E-mail: info@boev.de
Website: http://www.boersenverein.de
Organisational structure
back to topics
6.4 Polish Chamber of Books
Established Mid-1990’s
No. of members 280
Membership Publishers (100)
Booksellers (180)
Governing bodies Assembly
of Members (annual obligatory meeting)
Council (president, two vice-presidents and
six members)
Audit Committee (five members)
Arbitration Committee
Main activities
– Anti-VAT campaign
– New legal definition of a publication
– Promotion of reading
– Copyright Law amendments
– Books in Print and Publishing Forecasts
– Different types of professional training
Membership fees 394 PLN,
788 PLN and 1,576 PLN a year based on the annual
turnover
E-mail: regina.pik@mailcity.com
back to topics
6.5 Hungarian Publishers'
and Booksellers' Association
Established 1795 (then consisting primarily
of “Budapest” booksellers)1878 From this
time on it had a form and membership comparable
to today’s, i. e. it became a national organisation,
consisting of publishers and booksellers. 1952—1968
The organisation was abolished.
No. of members 112 currently, an additional
15 applications are pending
Membership Publishers (ca. 70)
Booksellers
Governing bodies Supervisory Board
(5 members)
Assembly of Members (each member company
is represented by one person)
Presidium (President, Vice-President + 5
members = 7), elected every three years by
the Assembly of Members.
Ethics Committee, elected every three years
by the Assembly of Members
Director
Main activities
– Represents the book trade and its special interests
– Lobbying, influence on trade-related legislation
– Represents the Hungarian book trade internationally
– Budapest International Book Festival
– Festive Book Week
Membership fees 5000 HUF, 10,000 HUF
and 20,000 HUF a month Depending on the annual
turnover of an enterprise. Votes at the Assembly
of Members are unequal, 1, 2 or 4 for respective
categories.
E-mail: mkke@mail.datanet.hu
Website: http://www.adatnet.hu/mkke
Structure
|
