Section 6
6. Party B's Remuneration
6.1 Composition of income
Party A shall use its reasonable endeavours to generate income for Party B by selling the work via different distribution channels (including but not limited to generating Single Chapter Subscription Income, income from other sales on Party A's Web Channels and from promotion on Other Digital Channels).
(To define other digital channels, it means all electronic channels other than Party A's Web Channels, including but not limited to other operator's channels, third-party websites and third party channels such as the Android market or the iTunes Market.)
6.2 Share of Single Chapter Subscriptions Income
Party B shall obtain a share equivalent to [50] per cent. of the Single Chapter Subscriptions Income.
Single Chapter Subscriptions Income shall be calculated based on the Net Income derived from single-chapter subscriptions for the Paid Chapters of the Work published on Party A's Web Channels, paid for by members of Party A's Web Channels minus distribution channel costs, operating costs and other costs, as below.
That is:
Single Chapter Subscriptions Income = (revenue from sales of single-chapter subscriptions on Party A's Web Channels — distribution channel costs, operating costs and other costs)
Party B's Share of Single Chapter Subscriptions Income = Single Chapter Subscriptions Income * [50] per cent.
Party A and Party B agree and acknowledge that the Single Chapter Subscriptions Income is calculated based on Party A's statistical data, and Party B may raise queries on and verify such data through the relevant information available on Party A's Website.
(PER 6.2, this is clearing up the issue of the income from chapters. It clears up it only comes from Paid Spirit Stones eventhough they are not regulating and preventing creation of alts because the ballooning of fake accounts benefits them when they promote the site, not the work(s). Anyway, it a site/operational issue they have to address, moving on.
The 50-50 split is based on net income after Party A's costs, as defined, are deducted. Well, they didn't specify what the other costs are nor is there any black and white definition for it. How are you supposed to know what else they can deduct? Shouldn't they, as the experienced platform, know most, if not all deductibles? Also, they stipulate that you can contest or query your earnings but you are only provided data as per their site. That is webnovel "view" data and inkstone collection data which is buggy and flawed. They won't give an income graph or a spreadsheet unlike other publishing platforms like amazon, ibooks etc.)
6.3 Share of proceeds from electronic sales other than those prescribed in Clause 6.2 of this Agreement
Regarding the income derived from: (i) the sale of the Work on Party A's Web Channels through marketing and/or promotional activities (including, but not limited to, time-limited free sales, discounted sales, complimentary tokens issuance and various promotion sales); and (ii) the sale of Internet Rights of the Work through Other Digital Channels, Party A shall allocate [50 percent.] of the respective Net Income to Party B.
6.4 Share of income from Audio Adaptation Rights
If Party A sub-licenses to a third party the Audio Adaptation Rights of the Work, unless otherwise agreed by the Parties, Party A shall provide Party B with [50 per cent.] of the Net Income derived from the licensing fees obtained from such sublicensing.
(PER 6.4, if you read it correctly. It actually only shares the licensing fees net income, not the sales for the audio adaptation. Has it been asked what happens with arrangement with an Audio Adaptation say through platforms like Audible and Findaway Voices? They wont have any licensing fees to buy but can produce your work's audio book. Hence any sale for those audiobooks, which are audio adaptations, are all paid to webnovel. Party B is expected to see 0 because of the wording of this clause.)
6.5 Share of income from English Paperback Publication Rights
If Party A sub-licenses to a third party the English Paperback Publication Rights of the Work, unless otherwise agreed by the Parties, Party A shall provide Party B with [50 per cent.] of the Net Income derived from the licensing fees obtained from such sublicensing.
(PER 6.5, this is the same with 6.4's issue. Say it goes the way of KDP Print or Createspace, Lulu, Ingramspark and the like, there is no licensing fees connected to it. The wording excludes the author from income of any paperback sale. They only get a cut from the license fees, period.)
6.6 Share of income from other copyright licensing
If Party A sub-licenses to any third parties any of its licensed rights other than Audio Adaptation Rights, English Paperback Publication Rights and the Distribution Rights under this Agreement in respect of the Work, unless otherwise agreed by the Parties, Party A shall provide Party B with [50 per cent.] of the Net Income derived from the licensing fees obtained. For the avoidance of doubt, the reference herein to income derived from sublicensing is only a reference to licensing fees obtained by Party A from sub-licensing the relevant copyrights of the Work to third parties.
(Per 6.6, again, the clauses specifically states the situation where a licensing fee changes hands. If it is a royalty fee or sale income, the contracted author sees 0, unless there is wording that says in the contract that licensing fee includes things such as a royalty fee from sales or the like. And I have not been able to find it.)
6.7 In respect of income earned by Party A from dealing with New Works created by itself or by a third party commissioned by Party A in accordance with Clause 2.6 of this Agreement, Party A shall provide Party B with [10 per cent.] of the Net Income earned in this connection.
(PER 6.7, this is pertaining to derivative work connected to either your characters, world or story itself, be it sequel, prequel, side story, alternate universe etc. that you are not writing, assuming it gets this far enough in reach. Keep in mind though, you gave webnovel specific authority to produce plagiarized work. So… imagine the possibilities.)
6.8 Party B acknowledges and agrees that the costs incurred in organizing various events in connection with the Work, including but not limited to promotional events held by Party A from time to time are considered part of Party A's operating costs (to be taken into account in calculating the Net Income).
(PER 6.8, those airline tickets and hotel accomodation and food webnovel is "paying" for. This clause specifically states those are operating costs in connection to promoting your work. So, I'm sorry travelling contracted authors under webnovel's "money", they are contractually allowed to collect on those and deduct it from your income as part of "other expense". You could argue you aren't actually paying 100% to reimburse their expense but it could be 50% based on the 50-50 split of net income as detailed in the previous section. But, as the wording here says, it is not all on webnovel's pocket as a fact.)
6.9 All remuneration described in this Clause 6 represent the full and sufficient consideration relating to the creation of and the licence granted to Party A in respect of the Work, and other rights as stipulated in Clauses 2, 3, 5, and 10 of this Agreement. Party A shall not be required to pay any other fees to Party B for using or otherwise dealing with the Work in accordance with the scope of this Agreement.
(PER 6.9, this is the confirmation on that royalty fee not being part of the sharing of income between webnovel and the author.. You won't see or get to keep any portion of the sale on Paperback (on platforms like amazon, lulu, ingramspark etc), or audiobooks (on platforms like Audible, Findaway Voices and the like). Remember the agreement was for licensing fees to be shared, nothing about royalties or sales. Ebooks can fall under 6.6 and since self publishing is a thing, no licensing fees as well I'm sorry to say. Unless someone is able to provide the specific clause of the webnovel contract version that says otherwise, it would be hard to argue against this.)