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 payment of earnings due clients promptly, but in no event later than ten business days after clearance and attribution; provided however that if funds for a client are received more frequently than quarterly and if those funds do not exceed a total of $100, then payments to clients may be made quarterly, so long as when funds received exceed $100 or upon the client’s specific request, payment to the client shall be made within ten days thereafter. In all cases, members shall exercise due diligence in seeking supporting and attribution information for payments received. 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.
If a member receives in writing a claim to funds otherwise due to a client, the member shall immediately so advise the client in writing. If the member determines that the claim is serious, and that the funds should not be remitted to the client because of the claim, the member shall proceed in accordance with the following:
For a period not to exceed ninety days, the member may deposit the funds in question into a segregated interest-bearing account pending possible resolution of the dispute. No later than the expiration of that ninety-day period, if the dispute remains unresolved and the claimants do not otherwise agree with respect to the disposition of the disputed funds, the member shall take such steps as may be necessary to deposit the funds with a court of competent jurisdiction, with appropriate notice to the claimants, so that the claimants will have an opportunity to present to that court their claims to the funds. Upon so depositing the funds, the member will have complied with the member’s obligations under this Canon of Ethics.
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.