Writer beware. According to an email from the Science Fiction Writers of America, Random House has launched an imprint called "Hydra" with all the hallmarks of a sleazy, scammy vanity-press: no advance on royalties, perpetual, all-rights assignments of copyrights, and all production expenses charged to the writer before any royalties are paid.
SFWA has determined that works published by Random House’s electronic imprint Hydra can not be use as credentials for SFWA membership, and that Hydra is not an approved market. Hydra fails to pay authors an advance against royalties, as SFWA requires, and has contract terms that are onerous and unconscionable.
Hydra contracts also require authors to pay – through deductions from royalties due the authors – for the normal costs of doing business that should be borne by the publisher.
Hydra contracts are also for the life-of-copyright and include both primary and subsidiary rights. Such provisions are unacceptable.
At this time, Random House's other imprints continue to be qualified markets.
This kind of rip-off is semi-standard with record deals, but it's unheard of in legit publishing, where the author typically receives an advance on royalties that is not refundable if it doesn't earn out; where authors traditionally assign a few, time-limited rights (English print/audio/ebook for a given territory, say); and where the production costs are wholly borne by the press in exchange for keeping the lion's share of any book revenue.
Hydra's deal is much, much worse than the one you'll get from a real DIY option like BookBaby or CreateSpace or Lulu, where you only pay for services you want, keep 100% of your profits, and assign no rights at all to the "publisher." It's got all the downsides of a DIY press, and all the downsides of a traditional press, and the upsides of neither.
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