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Update on Lawsuit

Here's an update from the Cengage Legal team:


As we previously reported, two authors filed a lawsuit in New York federal court claiming that the new Cengage Unlimited subscription service is inconsistent with the royalty provisions of their publishing agreements and also that Cengage’s allocation of a portion of digital courseware revenue to the Cengage platform is inconsistent with the provisions of these agreements.


  • As we then advised, the lawsuit would not delay the launch of Cengage Unlimited for students and instructors and it did not, as it went live on August 1, 2018.


  • Also, Cengage filed an “Answer” to the lawsuit which pointed out that the actual terms of the Plaintiffs’ publisher agreements include provisions fully assigning Plaintiffs’ copyrights to Cengage and express grants of authority to Cengage with regard to setting format, pricing and marketing; further, Plaintiffs’ agreements contain no terms limiting Cengage to any particular revenue model. The Answer also sets forth the business necessity for Cengage Unlimited and the financial benefits to students who utilize it.