"This is an old, old story in Hollywood," said literary agent Nicholas Ellison, who has represented numerous clients in book-to-film negotiations. When studios are asked why an author has not received any net profits, he said, they often point to expenses that have grown larger than expected and contend that a hit picture has not, in fact, made money.
It's called "Hollywood accounting," and in some cases studios may be on solid ground, citing legitimate costs such as promotion and development. But in other cases, contracts contain definitions of "net profits" that make it all but impossible for an author to collect money that once seemed tantalizingly at hand.
In one of the most notorious cases -- when columnist Art Buchwald sued Paramount over its use of his idea for the 1988 film "Coming to America," a film that grossed $350 million, and then later for its failure to pay him revenues -- a judge ruled in 1990 that the studio's internal accounting procedures were "unconscionable."
"Is Disney notorious for having a legal department the size of Western Europe and being particularly ferocious?" Ellison asked. "Yes. But that doesn't mean they're unethical. Or different from any other studio."
The stakes are high because 43% of Hollywood movies in the last five years were adapted from books and other written materials, according to estimates by the Writers Guild of America. What makes Gregory's case unusual is that she didn't simply write a book, she wrote bestsellers that led to a movie and marketing bonanza.
And there was no union able to help her. Writers often turn to the Authors Guild, a national organization based in New York, for advice in protecting their rights with publishers. But although the Authors Guild offers a checklist of things to keep in mind when dealing with Hollywood, it does not provide individual guidance or counseling.
"Hollywood deals are a trap for the unwary; they're almost intended to deceive," said Paul Aiken, executive director of the Authors Guild. "The best advice we give is that you should try to get as much of your money upfront. You can't count on net profit deals for anything."
Even if writers hire the best agents and lawyers, it might not make much of a difference, said veteran literary agent Jane Dystel, who has negotiated option deals on her own and in tandem with agents who specialize in book-to-film contracts.
