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of Age), and in books he may write in the future, for the duration of the

copyrights involved. Bill has declared his intention to have these royalty

rights revert to the movement when the copyrights expire. (1958 GSC-FR 7)


..
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++++Message 5545. . . . . . . . . . . . History of Royalties - Part 3

From: Arthur S . . . . . . . . . . . . 2/23/2009 10:53:00 PM


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1961 - April 19-23, (NY City) the 11th Conference. Bill W asked the General

Service Board of Trustees to consider specific action, in respect of royalty

payments on textbook literature, to assure that co-Founder Bill and his

wife, Lois, may not suffer a possible loss of income in the future.


..
In a moving display of its affection for Bill as the surviving co-founder of

A. A. and for Lois, his wife, the Eleventh Conference suggested to the Board

of Trustees that changes be made in Bill's current royalty arrangement

involving A. A. textbooks to minimize the possibility that Bill's income

might be reduced in the future if cheaper editions of AA texts are ever

produced.


..
The action was occasioned by a general discussion of the advisability of

producing a "cheap edition" of the "Big Book". (See separate Policy page of

this report)
..
In the course of the discussion, Bill reviewed his financial arrangements

with the movement, pointing out that all his income derived from book

royalties and that he did not receive compensation for his non-writing

services to the Fellowship. He stressed that he was not interested in

accumulating a large estate but that he was concerned for the welfare of

Lois and certain immediate relatives and devoted friends who might require

assistance in the event of his passing. He said that he had already

deposited with the Trustees an informal "letter of intent" suggesting what

disposition might be made of royalties due his estate after his death.
..
While noting that the reduced royalties from paperback texts would

undoubtedly curtail his income, Bill repeated a pledge that he has given

previous Conferences. He said that if royalties under his present contract

should become "unseemingly large" he would reduce them voluntarily or permit

the movement to take the initiative in reducing them.
..
Trustee Dick S presented the following memorandum which was converted into a

motion from the floor and adopted unanimously: "The Conference recognizes

that the publication of cheap editions of AA books would probably reduce the

income to World Services, and Bill's personal income. This conference

unanimously suggests the following to the Trustees: To add a rider to Bill's

royalty contract to the effect that, if cheaper books are ever published,

Bill's royalties be increased by an amount sufficient to keep the royalty

income at the same average level it had been for the five years before

cheaper books were published; (further, that) as time goes on, if inflation

erodes the purchasing power of this income, the Trustees will adjust the

royalties to produce the same approximate purchasing power; this to be

effective during the lifetime of Bill and Lois and Bill's legatees." (PIO

393, 1961 GSC-FR 3, 7)
..
1963 - Bill W modified his royalty agreement with AAWS so that 10% of his

royalties went to his mistress, Grapevine Editor, Helen W. The agreement

provided Bill and Lois with a comfortable living on annual incomes between

$30,000 to $40,000 during the 1960's ($175,000 to $233,000 today). At the

time of Bill's death (1971) it was around $56,000 ($295,000 today). In the

1970's, royalties surged significantly and it made Lois W quite rich. (PIO

393, BW-FH 192-193, GB 69-70, WPR 72)
..
1964 - April 21-26, (NY City) the 14th Conference reported that it reviewed

and approved an agreement between' Bill W, co-founder, and AA World Services

Inc covering royalties derived from Bill's writings. (The intent of the

agreement is to protect Bill, his wife, Lois, and their designated heirs,

while defining AAWS's position as the Society's publishing agency). (1964

GSC-FR 4)


..
A section of the Conference Report titled "Royalty Agreement On Bill's

Writings Approved" stated:


..
Of all the factors responsible for the growth of AA (and for the sobriety of

hundreds of thousands of men and women around the world), probably none is

more important than the movement's book literature. The three major texts -

"Alcoholics Anonymous," "The Twelve Steps and Twelve Traditions" and "AA

Comes of Age" along with the service manual on The Twelve Concepts of

Service are likely to endure as keys to personal sobriety and Group

survival. All four publications have one thing in common; they were written

or edited by Bill W, surviving co-founder, and the copyrights to them were

assigned by Bill to the movement. The movement was thus assured ownership of

its basic publications, the income from which has also underwritten many of

the Society's world services.
..
For his services to AA over a period of nearly 30 years, Bill has never

received salary compensation from the movement. His only income has been

from royalties on his writings and editorial work. Because the earlier

royalty agreements made no provision for protecting Lois, Bill's wife, in

the event of Bill's death, and did not provide for a transfer of royalties

to relatives to whom Bill and Lois have obligations, the agreements have

been reviewed by the General Service Board in recent years.
..
As a result, the Board in April, 1963, concluded a new agreement with Bill

which was submitted to the 1964 Conference for review and approval. The new

agreement, outlined in the report of the Conference Finance Committee, was

approved unanimously by the Delegates.


..
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++++Message 5546. . . . . . . . . . . . History of Royalties - Part 4

From: Arthur S . . . . . . . . . . . . 2/23/2009 10:54:00 PM


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The 1964 Conference Approved an agreement between Bill W, co-founder, and AA

World Services Inc covering royalties derived from Bill's writings.


..
Under the terms of the contract, a royalty of 15 per cent is paid to Bill,

except that no royalties are paid on "overseas editions." Royalties are to

be paid to Bill and Lois, his wife, during their lifetimes; following the

deaths of Bill and Lois, royalties revert in shares of royalties to living

heirs. These shares revert to AAWS upon the deaths of the beneficiaries. Not

more than 20 per cent may be bequeathed to any heir under the age of 40

years as of the date of the agreement between Bill and AAWS (April 29,

1963). The contract provides protection of royalties against "cheap books"

and protection of AAWS and Bill against fluctuations in general economic

conditions. AAWS retains the right of “first refusal" on any future

literary

works of Bill's. (1964 GSC-FR 9, 37)


..
1967 - April, the US copyright to the first edition Big Book expired and was

not renewed. The oversight was not discovered until nearly 20 years later in

1985. It was also discovered in 1985 that the US copyright to new material

in the second edition Big Book had lapsed in 1983. It should be noted

however that the Big Book copyright has expired only in the US. It is still

in force outside the US under international treaty agreements. (NG 299, GSO)


..
1975 - The Ask It Basket for the Conference contained the question:
..
Q. Who receives the royalties from book sales? What did this amount to in

1974? In 1973?


..
A. They used to go to Bill, now go to heirs designated in his will. Amounts

are in your financial statements for 1973 and 1974. (1964 GSC-FR 40)


..
1978 - (1978 GSC-FR 43) contained the following: AA World Services, Inc, as

lessee, provides facilities for GSO and the Grapevine, both of which pay for

the space they occupy. As employer, AAWS pays GSO employees' salaries. And

as publisher, AAWS owns the copyrights on all Conference approved books and

literature. It pays Lois a royalty on the books Bill wrote. (This royalty

was Bill's only source of income from AA. He never received a salary.)


..
The Ask It Basket for the 1978 Conference contained the question:
..
Q Please explain the royalties on the AA books.
..
A The royalties agreement on the books Bill wrote are covered in a contract

between Bill and the board. The royalty is 15% of the retail price. The

contract provides that he could pass the royalties along to his widow, and

that she could pass them on to another family member who is over 40 years of

age at that time. Following the death of the family member, the royalties

cease to exist and the money reverts to AA. The dollar amount is reported

yearly in the Conference Report (see pg 50).
..
1980 - (1980 GSC-FR 31) contained the following:
..
Big Book tapes - We approved the price of $25. We sought legal counsel on

royalties and were advised that, as tapes were not covered in the original

contract between Bill W and the board, there is no legal obligation.

However, a moral obligation seemed t o exist. Lois W was consulted, and she

chooses to forgo any royalties for one year and then review the matter.
..
1983 - The copyright to the new material in the second edition Big Book

expired without being renewed. AAWS did not discover the oversight until

1985. (NG 299) (1983 GSC-FR 31) contained the following:
..
After discussion and thought by this board and by the trustees, we accepted

Lois W's proposal that the 1963 royalty agreement between Bill W and the

board be amended to permit her to bequeath part of her royalties to a

foundation for at least ten years after her death or until 1997, whichever

is later, and also a part to her nephew.
..
1984 - The Ask It Basket for the 1984 Conference contained the question: Q

Could you please explain the royalties being paid on our literature? (I) On

which pieces of literature do we pay royalties? (2) How much? (3) To whom?

(4) For how long? A (1) The royalties are paid on the books Bill W wrote and

are: Big Book; "AA Comes of Age," "As Bill Sees It," and "Twelve Steps and

Twelve Traditions." (2) - (4) The royalties are the result of an agreement

between AAWS and Bill W in 1963. Bill got 15% of the retail value of the

books, and Lois was to receive 13 ½% of the retail value of the books,

which

she still receives today. As of last year, under the terms of the agreement



between Bill and AAWS, Lois could, on a one-time basis, bequeath 80% of the

royalties to individuals who were age 40 or more in 1963. The remaining 20%

could be left to anyone at any age. This agreement has now been amended, and

Lois can leave the royalties to other than an individual, such as a

foundation to maintain Stepping Stones. However, any royalties Lois wills to

a foundation will terminate ten years after her death. All other royalties

will revert back to the board upon the demise of the recipient. (1984 GSC-FR

32)
..


1985 - AAWS discovered that the copyrights to the first and second edition

of the Big Book had expired. The copyright on the first edition lapsed in

1967. The copyright on new material in the second edition lapsed in 1983.

Both AAWS and the Wilson estate shared responsibility for copyright renewal.

(NG 299, www)
..
The Ask It Basket for the 1984 Conference contained the question: Q When and

by whom was it decided that Lois's royalties could and would be bequeathed

to the next generation, and when will the royalties become AA's totally, if

ever? A The royalties are paid on the books Bill W wrote, which are: The Big

Book; "AA Comes of Age," "As Bill Sees It," and "Twelve Steps and Twelve

Traditions" (two editions). The royalties are the result of an agreement

between AAWS and Bill W in 1963. Lois was to receive 13 ½% of the retail

value of the books, which she still receives today. Under the terms of the

agreement between Bill and AAWS, Lois could, on a one-time basis, bequeath

80% of the royalties to individuals who were age 40 or more in 1963. The

remaining 20% could be left to individuals of any age. This agreement has

now been amended, and Lois can leave the royalties to other than an

individual, such as a foundation to maintain Stepping Stones. However, any

royalties Lois wills to a foundation will terminate ten years after her

death. All other royalties will revert back to the board upon the demise of

the recipient. In the amendment, Lois gives up the right to leave anything

to individuals younger than age 40 in 1963 except for an individual who was

a few months short of age 40 at that time. (1985 GSC-FR 32)


..
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++++Message 5547. . . . . . . . . . . . History of Royalties - Part 5 (last)

From: Arthur S . . . . . . . . . . . . 2/23/2009 10:55:00 PM


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1986 - (1986 GSC-FR 8) contained the following under the title "Update on

AA's copyrights."


..
The copyright on the first edition of the Big Book lapsed in 1967 and the

copyright on the new material in the second edition lapsed in 1983--both

because of a failure to renew them in a timely fashion. There was a mistaken

belief that registering the copyright on the second edition in 1956 served

to revive the copyright on the first edition; the misconception continued,

with respect to the second edition, when the third edition was copyrighted

in 1976.
..
But what was to be done about the royalties to Lois W prescribed in a 1963

agreement between Bill and AAWS Inc? We and Lois reaffirmed the intent of

Bill and the 1963 AAWS board by negotiating an amendment providing for the

continuation of the 1963 agreement as though the copyrights were still valid

and guaranteeing that Lois and AAWS, Inc, would each hold the other harmless

for the loss of the copyright in 1967.


..
1986 - (1986 GSC-FR 28-29) contained the following under the report from

AAWS:
..


We discovered that the copyright to the first edition of the Big Book lapsed

in 1967, and that the material in that book has been in the public domain

since that time. This event was precipitated by the publishing of a replica

of the first edition by CTM Inc. As a result, we engaged in significant

legal exchanges with that company, and we believe it has ceased to publish.

Future responsibility for copyrights has been placed in the hands of

attorneys.
..
An Agreement between Lois W and AAWS, Inc, was executed by Lois and John

Bragg (as president) on August 26, 1985, stipulating that: (1) Big Book

royalty payments will continue to be made as though the copyrights were

still in force; and (2) both AAWS and Lois (and her heirs) are released from

claims against the other for failure, if any, by AAWS, Inc or Bill W

(respectively) to apply for Big Book copyright renewal.


..
1988 - (1988 GSC-FR 32) contained the following under the report from AAWS:
..
Our copyright attorneys sent a letter to the publisher and Nan R, the

author, regarding her book "AA. -Inside Alcoholics Anonymous" which contains

excerpts from AA literature, the use of AA's trademark, and a violation of

the Twelfth Tradition. Due to lack of cooperation on the part of the author

and the publisher, we were advised by legal counsel to expeditiously take

all appropriate action with respect to trademark violation, including

litigation if necessary, regarding the book, which gives the impression it

is allied with AA and also threatens to be harmful to AA interests. As a

result some, but not all, objectionable features have been removed.
..
Agreed to renegotiate the renewal rights to As Bill Sees It once these

rights mature, and to discontinue negotiations with Lois W's attorney.


..
1988 - Oct 5, Lois W (age 97) co-founder of Al-Anon Family Groups, died.

(AACOA xi) Royalties passed to her surviving designated heirs who included

Dr Leonard Strong husband of Lois' sister-in-law Dorothy (Bill's sister), a

niece and nephew, Muriel Strong Morley and Leonard V Strong III, and

sisters-in-law Laura and Florence Burnham. Also listed were Nell Wing, Lois'

cousins Carol Lou Burnham, Ann Burhan Smith, Ann Walker, Dixon Walker and

Kate Knap plus Bill's cousins Jean Kalkoff and Barbara Palazari. 50% was

bequeathed to the Stepping Stones Foundation (to terminate on the later of

August 31, 1997 or 10 years after Lois' death).
..
1995 - (1995 GSC-FR 25) contained the following under the report from AAWS:

We discussed the proposal to settle with the recipients of our royalty

payments which would end our legal obligation to pay royalties. After

discussion, it was the consensus of the board that this would not be

beneficial at this point in time.
..
2007 - Based on data in final Conference Reports:
..
Cumulative royalties amounted to $656,095 up to Bill's death in January 1971

($4,151,978 in 2006 dollars). Cumulative royalties amounted to $9,063,985 up

to Lois' death in October 1988 ($23,259,233 in 2006 dollars). Cumulative

royalties from 1950 to 2007 totaled $19,148,182 ($37,117,034 in 2006

dollars).
..
Cheers
Arthur
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++++Message 5548. . . . . . . . . . . . RE: Bill W quote: Our quarrels have

not hurt us ....

From: jenny andrews . . . . . . . . . . . . 2/24/2009 3:55:00 AM
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Don't know about a "convention", but this is

what Bill said in a talk recorded in As Bill

Sees It under the heading Trouble Becomes an

Asset:
"I think that this particular General Service

Conference (1958) holds promise and has been

filled with progress - because it has had

trouble ... If this Conference was ruffled,

if individuals were deeply disturbed - I say,

'This is fine.' What parliament, what republic,

what democracy has not been disturbed?

Friction of opposing viewpoints is the very

modus operandi on which they proceed. Then

what should we be afraid of?"
- - - -
To: AAHistoryLovers@yahoogroups.com

From: Baileygc23@aol.com

Date: Sun, 22 Feb 2009 22:22:57 -0500

Subject: Bill W quote:

Our quarrels have not hurt us ....
Bill W. addressed one convention and said,

'Our quarrels have not hurt us one bit.'


Can anyone tell me which convention it was,

and where I can get a copy of his entire

address to that convention?
_________________________________________________________________

Check out the new and improved services from Windows Live. Learn more!

http://clk.atdmt.com/UKM/go/132630768/direct/01/
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++++Message 5549. . . . . . . . . . . . RE: Big Book royalties -- 10% to

Helen W.


From: jenny andrews . . . . . . . . . . . . 2/24/2009 4:07:00 AM
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Re history of BB royalties: "Helen (Wynn) was

always broke ... (so) Bill decided that she

would inherit a percentage of his royalties

from the (Big) book..." (My Name is Bill,

Susan Cheever, Washington Square Press, 2004);
and,
"After Helen left the Grapevine in 1962, Bill

contributed to her support though when he

wanted to direct a portion of his royalty

income to her, the AA trustees refused to do

it. Bill was furious, and Helen was terribly

hurt. In 1963, though, prompted by his

worsening emphysema, Bill and AA executed a

new royalty agreement that called for Helen

to receive ten per cent of his book royalties,

and Lois 90 per cent after his death. Bill

also added a codicil to his will in which he

referred to this agreement and confirmed that

the allocation of royalty income it provided

was indeed his desire." (Bill W: a biography

of Alcoholics Anonymous cofounder Bill Wilson,

Francis Hartigan, Thomas Dunne Books,

St Martin's Griffin, 2000).
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++++Message 5550. . . . . . . . . . . . Re: History of Royalties - on AACOA

From: mdingle76 . . . . . . . . . . . . 2/25/2009 10:09:00 AM


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The following carbon copy was found in a file

cabinet belonging to Tom Powers at East Ridge:


Harper & Brothers Jun 3, 1957

49 E. 33rd Street

New York, NY
Attention: Mr Eugene Exman, Religious Editor
Gentlemen:
Referring to the coming publication by you of

"A.A. Comes of Age" of which I am the author,

I wish to make the following disposition of

my royalty of 15% for the duration of the

first copyright or for the duration of the

time you continue to distribute the book —

whichever is the greater.
In advance of this publication I would like to

assign my royalties to the following people,

for services rendered:
On the first five thousand books, I would like

my royalty equally divided between Mr. Tom

Powers of Chappaqua, New York, and Miss Nell

Wing of New York City.


Should you dispose of more than this quantity,

I would like my royalties on the remainder

divided equally between Mrs. Katherine Swentzel

of New York City and Mrs. Helen Riker of

Phoenix, Arizona.
On the death of any of these people, their

share of the royalty will become payable to

my account at Alcoholics Anonymous Publishing,

Inc., New York City.


Again, let me thank you deeply for the

wonderful cooperation that I have enjoyed in

the preparation of this book from all of you

concerned at Harpers.


Sincerely yours,
William G. Wilson
WGW/nw
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