Cengage Seeking to Engage with Authors Regarding New Digital Royalty Allocations Post-Lawsuit

By Kim Pawlak, TAA Executive Director

Following ​a ​$20.9 million settlement of a class action lawsuit ​o​ver allegedly underpaid ​author royalties​, ​Cengage is now seeking to engage with its authors regarding new Digital Royalty Allocations (DRA) of royalties from digital courseware relating to their titles. Catherine Schnurr, the publisher’s director of product strategy and operations, sent letters to Cengage authors in March, asking them to contact their Author Relations Managers to schedule a meeting to discuss how the publisher has calculated their DRA in the past and how they will calculate it going forward.

In the letter, Schnurr states: “Your active participation in this process is valued and will help ensure your voice is heard, and your past efforts and future contributions are recognized.” She also said that Cengage is “now focused on strengthening our close partnership with authors,” and “intends to be as transparent as possible” about past and future DRA calculations. She added that “depending on your individual circumstances, the new calculation could result in an increase or decrease to your DRA.”

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What Authors Need to Know About Cengage Class Action Lawsuit Settlement

On November 24, 2024, the federal district court in New York granted preliminary approval to a $20,990,000 settlement of claims of royalty underpayment by Cengage Learning, Inc., in a long-running lawsuit brought on behalf of Cengage textbook authors by the class action law firm Susman Godfrey. There is a January 22, 2025 deadline for any authors wish to opt out of the class or to object to the settlement.

Cengage authors have asked us various questions about the settlement. Zick Rubin, attorney at the  Archstone Law Group and long-time TAA member (zrubin@archstonelaw.com), has provided some answers.

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TAA Member Phil Wankat’s Curation and Commentary of ‘The Academic Author’ Archives – Installment 3

The third installment of TAA Member Phil Wankat’s curation and commentary of the archival issues (1994 to 2010) of the The Academic Author, Contracts and Legal Comments, is now available. Articles include “Judges Frown Gravely on Plagiarists,” “Authors bristle at 10 percent electronic royalties.” “Protecting your rights to original art.,” and more.

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Share Your Book Contracts, Royalty Statements for Complimentary Review

TAA member Joseph Rust, CPA, CFP, an accountant with Prager Metis CPAs, is seeking authors interested in sharing their book contracts and royalty statements for a complimentary review. Rust would also like to know what authors’ concerns and questions are when it comes to their contracts and royalties statements. He plans to take the information he learns to provide resources, including a glossary of royalty statement terms, to TAA members in the coming months.

Please reach out to him directly at jrust@pragermetis.com. His full contact information can also be found in TAA’s Professional Directory.

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2025 TAA Virtual Conference on Textbook & Academic Authoring Call for Proposals Now Open

The TAA Conference Committee invites proposals for its 2025 Textbook & Academic Authoring Conference, which will be held online June 6-7. Presenting at TAA’s 2025 Conference provides an opportunity to share your knowledge, experiences, and ideas with other textbook authors, academic authors, and industry professionals. The theme is “The Future is Now.” We welcome proposals from first-time and veteran presenters! The deadline for submitting a proposal is October 13, 2024.

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Court Certifies Class of Textbook Authors in Class Action Against Cengage

By Zick Rubin and Brenda Ulrich, Archstone Law Group PC

On September 25, 2023, Judge Andrew Carter of the federal district court in New York City certified a class  of textbook authors in a class action brought against Cengage Learning  (Bernstein v. Cengage Learning, Inc.). The lawsuit alleges that Cengage unfairly apportioned the revenues it received from sales of “MindTap” digital interactive versions of the authors’ texts, arbitrarily  allocating to the authors either 50% or 75% of these revenues and reducing royalties accordingly. In the wake of the class certification, lawyers for the authors can proceed to seek reimbursement on a class-wide basis for the allegedly underpaid royalties. The class may consist of hundreds or thousands of authors, and the total claimed underpayment may total many millions of dollars.

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