4 Questions authors are asking about open textbooks

Whether you are a veteran textbook author or new to the industry, you’ve likely heard of open educational resources (OER) and open textbooks by now. As with anything new, the open textbook model is faced with scrutiny and questions from those familiar with the traditional publishing process. It’s also laden with opportunities, such as the current $5M open textbook pilot program.

To better understand the open textbook model, specifically what is the same and what is different from traditional publishing options, we asked some questions of several leaders in the open textbook movement. Here’s what we learned.

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Authors may be eligible for proposed IRS regulation on 20% deduction for income from pass-through businesses

Based on proposed regulations issued by the IRS and Treasury that would add a new provision of the Internal Revenue Code allowing owners of sole proprietorships, S corporations, LLCs, or partnerships a deduction of up to 20% of the income earned by the business, writers will be eligible for the deduction, said Robert Pesce, an accountant with Marcum LLP.

“I read the 184-page Proposed Regulations,” said Pesce. “There is nothing in the regs that excludes authors from the deduction or indicates an author is a SSTB [Specified Service Trade or Business category, which is excluded from the deduction]. 

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College textbook publishing: Royalties, risk, and reward

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.

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

In 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 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.

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Will Cengage’s rising tide lift all boats?

Subscription models for reading materials are not unheard of in other industries, but they are a new model emerging within the higher education publishing industry. Late last year, Cengage announced Cengage Unlimited, a subscription based model offering access to its entire catalog of textbooks and related learning materials to college students for a flat price of $119.95 per semester calls Cengage Unlimited.Royalty structures under these models vary. Newer contracts provide broad leeway for publishers to allocate royalties on in a way they deem reasonable.

While boon to students, especially those assigned multiple Cengage texts, it has left Cengage authors wondering about the impact to their royalty earnings.

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Re-engineering the modern textbook: A conceptual shift from content delivery to learning design

Textbooks have historically provided the core content from which teachers develop and deliver learning experiences to their students – a static, paper manuscript delivering conceptual knowledge and exercises to reinforce the material. As mobile technology has provided alternative ways to access and read content in electronic form, most textbooks have been distributed in an e-book format (commonly ePub or PDF) as well, but is this “new” format providing any benefit to student learners?

Arguably the costs of this paperless format are less; search features can improve the speed at which content can be located; and assistive technology, such as screen readers and magnification tools, can improve the accessibility of the information over the print alternative. But, does the technology improve learning?

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