AAR Association of Author's Representative
CANON OF ETHICS
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1. The members of the Association of Authors' Representatives, Inc. are
committed to the highest standard of conduct in the performance of their
professional activities. While affirming the necessity and desirability of maintaining
their full individuality and freedom of action, the members pledge themselves to loyal
service to their clients' business and artistic needs, and will allow no conflicts of
interest that would interfere with such service. They pledge their support to the
Association itself and to the principles of honorable coexistence, directness, and
honesty in their relationships with their co-members. They undertake never to mislead, deceive, dupe, defraud, or victimize their clients, other members of the Association,
the general public, or any person with whom they do business as a member of the Association.2. Members shall take responsible measures to protect the security and integrity
of clients' funds. Members must maintain separate bank accounts for money due their
clients so that there is no commingling of clients' and members' funds. Members shall deposit funds received on behalf of clients promptly upon receipt, and shall make
payments of domestic earnings due clients promptly, but in no event later than ten
business days after clearance. Revenues from foreign rights over $50 shall be paid
to clients within ten business days after clearance. Sums under $50 shall be paid
within a reasonable time of clearance. However, on stock and similar rights, statements of royalties and payments shall be made not later than the month following the member's receipt, each statement and payment to cover all royalties received to the 25th day
of the previous calendar month. Payments for amateur rights shall be made not less frequently than every six months. A member's books of account must be open to the
client at all times with respect to transactions concerning the client.3. In addition to the compensation for agency services that is agreed upon between a member and a client, a member may, subject to the approval of the client, pass along charges incurred by the member on the client's behalf, such as copyright fees,
manuscript retyping, photocopies, copies of books for use in the sale of other rights,
long distance calls, special messenger fees, etc. Such charges shall be made only if
the client has agreed to reimburse such expenses.4. A member shall keep each client apprised of matters entrusted to the member and
shall promptly furnish such information as the client may reasonably request.5. Members shall not represent both buyer and seller in the same transaction. Except
as provided in the next sentence, a member who represents a client in the grant of
rights in any property owned or controlled by the client may not accept any
compensation or other payment from the acquirer of such rights, including but not
limited to so-called "packaging fees," it being understood that the member's
compensation, if any, shall be derived solely from the client. Notwithstanding the
foregoing, a member may accept (or participate in) a so-called "packaging fee"
paid by an acquirer of television rights to a property owned or controlled by a
client if the member: a) fully discloses to the client at the earliest practical time
the possibility that the member may be offered such a "packaging fee" which the
member may choose to accept; b) delivers to the clients at such time a copy of the Association's statement regarding packaging and packaging fees; and c) offers the
client at such time the opportunity to arrange for other representation in the
transaction. In no event shall the member accept (or participate in) both a packaging
fee and compensation from the client with respect to the transaction. For transactions
subject to the Writers Guild of America (WGA) jurisdiction, the regulation of
the WGA shall take precedence over the requirements of this paragraph.6. Members may not receive a secret profit in connection with any transaction
involving a client. If such profit is received, the member must promptly pay over
the entire amount to the client. Members may not solicit or accept any payment or
other thing of value in connection with their referral of any author to any third party
for any purpose, provided that the foregoing does not apply to arrangements made
with a third party in connection with the disposition of rights in the work of a client
of the member.7. Members shall treat their clients' financial affairs as private and confidential, except
for information customarily disclosed to interested parties as part of the process of
placing rights, as required by law, or, if agreed with the client, for other purposes.8. The AAR believes that the practice of literary agents charging clients or potential
clients for reading and evaluating literary works (including outlines, proposals, and
partial or complete manuscripts) is subject to serious abuse that reflects adversely on
our profession. For that reason, members may not charge clients or potential clients
for reading and evaluating literary works and may not benefit, directly or indirectly,
from the charging for such services by any other person or entity. The term "charge"
in the previous sentence includes any request for payment other than to cover the
actual cost of returning materials.