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

Cengage 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 15 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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Cengage says authors cannot opt out of Cengage Unlimited

In a recent post on the Cengage blog, Erin Joyner, the company’s senior vice president of product, said that authors cannot opt out of Cengage Unlimited. However, industry experts say Cengage cannot make this sweeping statement.

“The large majority of publishing agreements do not contemplate the Cengage Unlimited model of distribution,” said David Slarskey, a litigator with Slarskey LLC. “Refusing author demands to opt-out tends to undermine the terms of the contract.”

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2018 Textbook award-winning insight (Part 1): Deciding to write and getting the interest of a publisher

We recently reached out to winners of the 2018 TAA Textbook Awards and asked them to answer some questions about how they made the decision to write their textbook, how they interested a publisher, what they do to boost their writing confidence, how they fit writing time into their schedule, and more. We will be sharing their answers in a series of posts over the next few weeks.

This first installment of the four-part series focuses on why they decided to write their textbook, and how they got the interest of a publisher.

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Executive Director’s Message: Developing sustainable textbook business models

Textbooks have a very different challenge from journals in converting to online businesses.  First, readers have not embraced longer works online quite as enthusiastically as they adopted shorter journal articles. Print continues to have strong appeal as a reading format.

Another critical barrier to developing sustainable online textbook business models is working out the complexities of author royalties.

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