materials, when delivered to Agency, will be free and clear of any and all claims, liens, mortgages and any other encumbrances of any kind or character (except with respect to the scripts and materials furnished by Agency), that none of the films will in any way infringe upon the rights of any person or violate the private. civil or property rights or right of privacy of anyone or any national, state or local law, order or regulation and will in no way constitute a libel, slander or defamation of anyone. Agency further warrants that Agency or Agency's clients or Agency's successors and assigns will have the unfettered right to copyright this material and to exercise sole and exclusive rights to make copies, sell, exploit, rent, lease, license, distribute, exhibit or otherwise use or dispose of the material throughout the world for any royalty fee or license fee whatsoever. (1) Quality: It is agreed that each production when completed will be in all respects of first and Class A esthetic and artistic quality and technically equal to current SMPTE and ASA Standards, all subject to our approval and acceptance. All pertinent photography shall be within the television safety margin of the motion picture frame size so as to be visible to the television viewer. All videotape productions must meet with the specifications outlined by the Federal Communications Commission for vertical and horizontal blanking.

19. COMPLETE AGREEMENT

This Agreement contains the binding and complete agreement between the parties hereto and supersedes all other agreements and representations, written or oral, on the subject matter hereof. No additions or modifications to this Agreement shall be effective unless they are in writing, signed by both parties, and make specific reference to this Agreement.

20. MISCELLANEOUS

a. The captions and paragraph headings hereof are inserted for convenience only and shall not be deemed to define, limit or expand the meaning of any provision.

b. If any provision of this Agreement shall prove to be invalid, void or illegal, it shall in no way affect, impair or Invalidate any of the other provisions hereol.

A copy of this form must be signed and returned to: Accounting Department, 30400 Van Dyke, Warren, Michigan 48093.

(11) HARCOURT BRACE JOVANOVICH, INC.

Orlando, Florida 32887

DATE:

CONTRACT B

THE PHOTOGRAPHER

agrees to perform for HARCOURT BRACE JOVANOVICH, INC. (the Publisher) of Orlando, Florida 32887 the following assignment pertaining to the work tentatively titled

RESPONSES OF TOM CLANCY TO QUESTIONS
PRESENTED BY SENATOR DECONCINI

1. The fundamental question here is not one of legal remedy but of practicality. The great majority of writers, photographers, and other artists in our country is composed of people earning on the order of $30,000 per year or less. For such people to engage in legal combat with multi-billion-dollar corporations, while technically possible, is not a serious option -- even discounting the ability of the media corporations to black-list their lilliputian enemies. All the large corporation need do is to instruct its legal counsel to delay and obfuscate until the litigant's funds are exhausted, thus winning the case by default.

My own dispute involved a third-rate publisher and one of the top five or so best-selling authors in America. My own financial resources were barely equal to those of my adversary. Principles cost money. Publishers have far more money than any author. Because of that the playing field is heavily weighted against the little guy.

One additional point may need saying. American publishers are being acquired by overseas entities for whom the United States Constitution is no doubt an interesting but foreign document. It is not possible that the thoughts of American creators will to some greater or lesser degree soon be subjected to approval of others for whom American interests and American rules of conduct are simply not relevant? A recent article on the acquisition of Columbia Pictures by Sony quoted Sony's CEO as saying that the purchase would go far to correct American perceptions of Japan. While I have not the slightest reason to doubt the integrity of Mr. Morita, is it possible to read such a statement and not feel a slight chill? I hasten to add that I am also the #1 bestselling author in Japan, and am published world-wide. Red Storm Rising, by the way, was not published in a foreign country for fear of offending its sensibilities. That country is a NATO ally, and one of its corporations now owns a major American media empire. The ownership of American media institutions by foreign agencies, added to the ability of those agencies to control the creative thoughts of American citizens under "work-for-hire" is something quite troubling to me.

2. The Constitutional mandate and its ethos are explicit: the only way for useful ideas to appear at all is to ensure that those who create them are encouraged and protected. However much the publishers may protest that they spread ideas about while making a good deal of money in the process - the Constitution does not mandate their right to disseminate ideas. It mandates our right to be protected from those who try to steal them. Anything that makes our work harder to steal, then, is of benefit to creators and therefore in keeping with Constitutional intent. What the Constitution recognizes are not marketing rights, but rather the simple fact that unless people are encouraged to create new ideas, there will not be many new ideas. Ideas are what built America.

3. The Author's Guild also has a model contract that has gained a fair measure of acceptance with the major trade publishers, but not with many small ones. Presumably there are other such model contracts for other artistic areas, but our ability to encourage their acceptance on the various segments of the publishing industry is impaired by the fact that artists are not exempt from anti-trust legislation.

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4.

First of all, the issue of "moral rights" is a red herring foisted upon the issue by the publishers for their own propagandistic purposes. My own perspective here is limited to what the framers of the Constitution clearly thought.

Publishers do not create books. If they did, they would have no need of authors. They don't pay us because we are amusing, but because we are essential. We make the product which they sell.

Third, publishers of all sorts exist because people want to read and see ideas and other expressions of the human mind. That is the market. Publishing is a business which connects creators with consumers. A publisher is someone who takes an idea from Person A and sells it to Person B. A publisher creates neither the ideas nor the market. The publisher is the agency which exploits both -- and when done successfully, performs its exploitation to the benefit of all.

The Constitution seeks to promote creativity by protecting creators. Publishers do not need Constitutional encouragement or protection. Adam Smith takes care of them quite nicely.

5. As currently structured, publishers do indeed take the greatest financial risk, and, appropriately, theirs is also the greatest financial reward in the event of success. Please allow me to illustrate how this works:

In the case of my first novel, The Hunt for Red October, each book costs roughly $1.50 to manufacture. My royalties per copy are roughly $1.50. The publisher sells the book to vendors (book stores) for about $7.50, and it was sold to the consumer at whatever price the vendor deemed appropriate. Thus, while my gross income from the book is $1.50, the publisher's gross income is roughly $4.50, or three times what I make per copy. (If someone notes that their gross profit necessarily includes various business expenses, well, so does mine. I have a family to feed and my own living expenses to cover. "Net Profit" to a publisher goes to dividends paid out to stockholders. "Net Profit" to an author is what is left over for savings after his or her day-to-day expenses are met.)

As one can see, the publisher is already given significant reward and incentive to market his product. Following up on this reasoning we see that the act of publishing is in no way heroic. It is, rather, a business, with wholly normal business risks and rewards. By the rules of the publishing game -- drafted, of course, by the publishers themselves - their marketing and promotional efforts bear greater fruit for themselves than for the authors: In my case by a factor of three-to-one.

The only efforts that a publisher can expend to aid an author are of even greater aid to itself. This sort of enlightened self-interest is the ideal condition for any healthy business, and is precisely the condition which we hope to extend through all aspects of the publishing industry.