Analog contracts in a digital world

College level textbooks and their publishers have been in the news a lot lately, with all of the major higher education publishers emphasizing a shift to a digital first market strategy. The vast majority of publishing agreements for established textbooks were written in a world where print books were the dominating market offering. As the world shifts, there are certain contractual provisions to be mindful of when evaluating one’s royalty statements and in negotiations over amendments.

In reality, print sales still dominate, but publishers are trying to move away from the model, and the future of higher education materials is uncertain.

President’s Message: The shifting landscape of textbook publishing

As many of us return to campus for the fall semester, it may be time for both textbook and academic authors to take a look at what our institutions are doing regarding textbook purchases and costs. Is your campus offering Cengage Unlimited or signing up for Pearson’s Inclusive Access? With Pearson’s recent announcement this past July that it will also be “moving from ownership to subscription based access models”, several of the major publishers have now committed to digitally transforming their businesses into something more akin to Netflix than what authors have been used to (DVD purchases).

MindTap and Cengage Unlimited under fire from two new class action lawsuits

On August 12, 2019 the law firm of Susman Godfrey LLC filed a class action lawsuit against Cengage Learning on behalf of Douglas Bernstein and four other authors. Three days later, a similar suit was filed by Slarskey LLC on behalf of Grafton H. Hull.

Both cases reflect elements of a 2018 lawsuit against Cengage Learning by authors David Knox and Caroline Schacht, which was handled by Slarskey’s firm. At issue in all of these cases are Cengage’s emerging publishing practices and royalty calculations associated with its digital MindTap platform and the Cengage Unlimited subscription service.

Pearson’s move to ‘digital first’: Perspective from a key Pearson executive (Part I)

On July 24th, I had the opportunity to interview Paul Corey of Pearson by phone for about an hour regarding the recent announcement that Pearson will move to a digital first strategy for its textbook business. Paul is the Senior VP of Global Content Strategy for Pearson, and thus plays a key role in developing and implementing plans like the digital first strategy. Paul also has primary responsibility for Pearson’s relationships with authors, so I was especially appreciative of the chance to hear his thoughts on how the new direction might affect authors.*

I started the conversation by asking Paul about the principal reason for Pearson to shift its focus to a digital-first strategy. He responded with three specific rationales for the move, not necessarily in order of importance:

Pearson’s ‘digital first’ announcement: A legal perspective

Interpreting, Adapting, and Amending Textbook Publishing Contracts in a Changing Publishing World

In announcing its new strategic commitment to digital courseware and its dramatic break from the traditional model of successive print editions of textbooks, Pearson addressed a letter “to our author community.” In the letter, Pearson emphasized its ties to “our authors and partners” and declared that “together we can provide updates, enhancements, and digital functionality to respond more quickly to changing customer expectations, demands, curricular shifts and developments in your field.”