What's Happening?
Sage Publishing has agreed to send a corrective email to authors following a dispute over guidance related to the $1.5 billion Anthropic copyright infringement settlement. The Textbook & Academic Authors
Association (TAA) filed a motion after Sage sent emails advising authors to claim a share of the settlement proceeds based on a 10% royalty rate, which TAA argued was misleading. The court has set a 50/50 default split for trade and university press books, with a separate process for educational and textbook publishers. The settlement involves significant financial stakes, with potential payouts for authors varying based on participation rates.
Why It's Important?
The resolution of this dispute underscores the complexities involved in large-scale settlements, particularly in the publishing industry where authors and publishers often have conflicting interests. The outcome of this case could set a precedent for how future settlements are handled, especially regarding the distribution of funds between authors and publishers. It highlights the need for clear communication and fair processes to ensure that authors, who may lack the resources of large publishers, receive equitable compensation for the infringement of their works. This case also emphasizes the importance of transparency and accountability in legal settlements.
What's Next?
Authors have until January 15 to opt-out or object to the settlement, with the deadline for filing claims set for March 30, 2026. The process for determining the split of settlement proceeds will involve a Claims Administrator and potentially a neutral special master if disputes arise. As the settlement progresses, stakeholders will be closely monitoring the distribution of funds and the impact on the publishing industry. The resolution of attorneys' fees, which remain unresolved, will also be a critical factor in the final allocation of the settlement funds.
