Independent publishers contribute immeasurably to the industry's health. They give first-time authors the opportunity to get published. Specialty houses nurture niche markets that large companies overlook. And because many independents invest more time in fewer titles than the big houses, they often produce high-quality books that sell for years.

But with the consolidation of distributors, wholesalers and bookstores, and the emergence of online retailers, big companies primarily see independent publishers as an easy mark. Too many are delaying or deferring payment to niche houses while they pay their bills from the largest publishers first. At least, that's what an executive at a major wholesaler told me when I called on behalf of the country's largest association of independent book publishers to ask what the problem was.

These unfair business practices can seriously endanger an independent house's cash flow, but few are willing to talk about the problem openly, for fear of reprisals from the retailers, distributors and wholesalers on whom their businesses depend. But I know the situation is reaching a crisis because I hear from 10 to 20 small presses a week who haven't been paid for books they've shipped in good faith.

Here are just a few of the practices that have become all too common, as reported to me by members of the PMA, the Independent Book Publishers Association:

  1. Despite their stated 30- to 60-day payment policies, some wholesalers, distributors and retailers often take two and sometimes three times longer to pay independent publishers.

  2. Some companies cut their checks on time, but don't mail them to the publisher for weeks or months after the issue date.

  3. Some pay one invoice, while ignoring another issued by the same press on the same date or earlier.

  4. Some wholesalers, distributors and retailers deduct the cost of returned books from a payment they are making for a new shipment, before they have fully itemized and shipped the returns.

  5. Some don't even pay their invoices for five to nine months, until they have initiated a shipment of returns on the original order.

If any of these practices were contractually sanctioned between the parties or if they were occasional lapses, perhaps we could write them off. But the evidence supplied by PMA's membership suggests that these companies are consistently taking advantage of the fact that many independent presses are not big enough to fight them.

At best, their practices are an affront to the entrepreneurial spirit of American business. At worst, they may constitute illegal accounting procedures that enable a company to falsely inflate its cash reserves in financial statements. Either way, independent publishers can't afford to stay silent any longer.

But whom do you address when no one is willing to listen or to assume responsibility? Before our industry became consolidated, many business owners prided themselves on their quality of service and integrity. Today, however, profits trump principles, while irate publishers are left to navigate a labyrinth of voicemail and generic e-mails.

So why should Goliath bother to listen to David's complaints—especially if ignoring those complaints seems to make good business sense in the short term? In part, because these practices could drive independents to file complaints with the SEC against the publicly traded companies. But big retailers, wholesalers and distributors have a more compelling reason to play fair. Their long-term success depends on the survival of independent publishers. If the executives of these firms can work with independents to set reasonable payment schedules—and then stick to those agreements—everyone will benefit. After all, independent houses publish 65%—70% of the books on the shelves of the superstores, and that's a big chunk of business to ignore.

Jan Nathan is executive director of PMA, the Independent Book Publishers Association.