Reflections on negotiating a contract 1: Leverage and the power to negotiate

NegotiationWhen I wrote my last series of posts, I was waiting to hear whether a publisher would offer me a contract for my book for graduate students. The publisher—Routledge—did make an offer, marking the pleasant culmination of the 10+ month proposal process, and I could begin to look forward to publication, most likely in 2020 of my book titled Literature Review and Research Design: A Guide to Effective Research Practice. Getting the offer was a great milestone, but it didn’t put an end to the larger process of getting published. The next phase began with the question of whether to accept the offered contract and whether and how to negotiate for changes. As with my previous series of posts, I offer the reflections of a relative novice, not the advice of an expert. [Read more…]

Cengage announces launch of new ‘Author Relations Team’

textbooksCengage announces the launch of its new three-member “Author Relations” team, which will be responsible for working with its higher education authors on their business-specific needs and questions related to contracts and royalties.

According to a post on their blog that answered questions posed by TAA last fall, “The AR team will take lead on working with authors regarding royalties across the board. Each author will have an AR rep that they can call directly with questions of that nature.” [Read more…]

1/29 TAA Webinar: Your Royalties: The Devil is in the Details

Juli SaitzJoin us Tuesday, January 29 from 2-3 p.m. ET for the TAA webinar, “Your Royalties: The Devil is in the Details,” where presenter Juli Saitz, Senior Managing Director at Ankura Consulting Group, will give a brief overview of key clauses in publishing agreements and discuss specific contract clauses that affect royalty calculations and payments. She will also examine the same clause with slightly different language for two hypothetical contracts and then present how the royalties differ under each scenario.

Register today! [Read more…]

College textbook publishing: Royalties, risk, and reward

High books stack with open book isolated on white background. Many colorful book covers.College textbook authors are motivated to write for many reasons. Some write with the goal of providing the optimum textbook for their students. Others are excited to share their approach to teaching a subject, or they simply enjoy the experience of translating research into practice. And, in some cases, the primary motive is to generate income.

Regardless of their motives, every textbook author must grapple with the same question: How can I achieve the best return on the time I spend writing a textbook, and how much risk should I accept in exchange for my sweat equity? To this end, there are several considerations authors should keep in mind regarding royalties as they negotiate a publishing agreement. [Read more…]

Cengage denies trampling authors’ rights, claims Cengage Unlimited will increase author royalties

TextbooksIn its response to a class action lawsuit filed against them in May by David Knox and Caroline Schacht, Cengage denies that its business model “tramples on” or is in any way inconsistent with its authors’ rights and said it believes that the new Cengage Unlimited model will “increase sales and revenues (and, accordingly, royalties to authors).”

Cengage authors Knox and Schacht filed their class action lawsuit in the U.S. District Court for the Southern District of New York on May 14 against Cengage claiming the company’s emphasis on digital distribution, including its new Cengage Unlimited model and expanded digital courseware offerings, have violated their publishing agreements. The suit also claims that the company is refusing to provide information that would allow them to audit their royalty payments. [Read more…]

Authors Knox and Schacht file lawsuit against Cengage, claiming company has ‘trampled on its authors’ rights’

Textbook StackCengage authors David Knox and Caroline Schacht filed a class action lawsuit in the U.S. District Court for the Southern District of New York on May 14 against Cengage claiming the company’s emphasis on digital distribution, including its new Cengage Unlimited model and expanded digital courseware offerings, have violated their publishing agreements. The suit also claims that the company is refusing to provide information that would allow them to audit their royalty payments.

According to the complaint, Cengage’s plan to overhaul its business model after emerging from bankruptcy in 2014, “has trampled on its authors’ rights”. The suit alleges that Cengage’s new Cengage Unlimited business model has the company “dismantling its support” for individual title sales in favor of selling subscriptions to Cengage Unlimited, which plaintiffs say violates their contracts and will reduce the amount of royalties they will earn, while allowing Cengage to retain a larger share of revenue. [Read more…]

Announcement of Cengage Unlimited royalty calculation model raises new questions

online library of textbooksCengage’s royalty calculation model for its new subscription service Cengage Unlimited has raised a few questions that remain unanswered, primarily, will their model account for the range of existing publishing agreements—which have a variety of different provisions for accounting for royalties?

“Here’s the key problem,” said Stephen E. Gillen, a partner with Wood, Herron & Evans. “Cengage has a wide variety of different contracts that were entered over time. Some of their longer lasting titles, those in their 10th edition and up, are the subjects of original contracts still in place that were entered 40 or more years ago. Many of their contracts were not done on Cengage forms but were acquired from other publishers, all of which have different provisions for accounting for royalties. Some of them were done before the days of bundling, custom publishing, digital publishing, and publishing through interactive/adaptive learning platforms and so do not provide expressly for those then unanticipated media or channels of distribution. But Cengage has thousands of authors and almost certainly a greater number of contracts (no author will have less than one contract, and many will have multiple contracts). It’s hard for me to imagine that they are going to have lawyers go back over every single contract to determine if and how it should be treated in the current scheme.” [Read more…]

3/7 TAA Webinar: ‘Royalty Disputes: Legal Strategies in Pursuit of Information and Payments Due’

Juli SaitzDavid SlarskeyJoin us Wednesday, March 7 from 2-3 p.m. ET for the TAA Webinar, “Royalty Disputes: Legal Strategies in Pursuit of Information and Payments Due”, presented by dispute resolution lawyer David Slarskey and royalty auditor Juli Saitz. The two will discuss the challenges associated with getting reliable information from publishers, the state of the law for authors seeking access to data, and negotiation and legal strategies for pursuing recoveries while protecting relationships.

[Read more…]

Cengage ‘will honor all contractual obligations’ with authors under Unlimited model

online libraryCengage’s Chief Product Officer Fernando Bleichmar said the company will continue to honor its contractual obligations with authors under the Cengage Unlimited model, but that the contract they have with authors generally grants them the discretion to publish the work in the way they think best helps drive the sales of those titles.

“We have spent significant time with our internal teams making sure the contracts allow us to do the Unlimited model,” he said. “The contracts are established in a way in which the publishers have the discretion of evolving the model that benefits both the authors and the publisher, and our contracts allow the creation of different models. We are going through all the details in the contracts, having those conversations with our authors to make sure they are comfortable with the Unlimited model as we move forward.” [Read more…]

Authors express concern about new Cengage Unlimited subscription service

online booksCengage’s announcement of a new subscription service, Cengage Unlimited, that gives students at U.S. higher education institutions access to all of the company’s digital higher education materials for $119.99 a semester has Cengage authors concerned about how their contracts will be affected.

“I think the authors should find out as soon as possible how we are going to be paid,” said mathematics author Pat McKeague, who did not receive any information from his publisher about the new service prior to its public announcement, and has not been able to reach his editor for more information. “My contracts require my written permission before any electronic version of my book can be published.” [Read more…]