Thursday, April 24, 2014

The Misfortune of MacAdam/Cage & MP Publishing

The Many Ways of Ebook Theft

Dayne Sherman
April 24, 2014

This statement was just sent by e-mail to me from the Authors Guild. It is reproduced verbatim except for adding  full web links to linked documents. 

MacAdam/Cage authors demand their ebooks to revert. They were "sold" without our knowledge, consent, or compensation.

Via email transmission from The Authors Guild.

On Thursday, April 24, 2014 3:34 PM, Stevie Fitzgerald <> wrote:

Hi All,

You are getting this email because you have communicated with us in the past about the MacAdam/Cage bankruptcy. Included below is an update with all the relevant information we have to date along with links to important documents. We expect to have this up on our website sometime tomorrow, but wanted to make sure that everyone directly affected got a copy. Feel free to forward this information.
Good news for all MacAdam/Cage authors! On March 4, 2014, the MacAdam/Cage bankruptcy proceedings finally concluded.1 All publishing contracts between MacAdam/Cage and its authors are now terminated and most rights have reverted to the authors. You can view the “Final Decree” that was entered in the United States Bankruptcy Court here: This, together with Section 365 (d)(1) of the Bankruptcy Code (here: should act as proof of reversion of rights. According to that Section of the Code, all contracts that are not assumed by the trustee are deemed rejected 60 days after the filing date, [1] [2]January 17, 2014. This means that, as of March 18, 2014, the publishing agreements between MacAdam/Cage and its authors are all terminated and the authors’ rights have reverted, with the exception of rights previously licensed to a third party. Authors whose rights were licensed to a third party must comply with the terms of any licensing agreement.2 

However, the electronic rights to many titles may not have reverted to their authors. MacAdam/Cage signed an agreement with MP Publishing in March 2009, which gave MP Publishing the electronic book rights to almost 200 MacAdam/Cage titles. This agreement survived the dissolution of MacAdam/Cage, so MP Publishing retains the electronic book rights to the works specifically listed here:, subject to the specific terms of the authors’ individual contracts with MacAdam/Cage.3 It is important for authors of books on this list to note that although their print and various other rights may have reverted, their electronic rights remain with MP Publishing.

Authors whose e-books are being offered for sale by MP Publishing are bound by the terms of the 2009 agreement between MacAdam/Cage and MP Publishing, which can be viewed here: Additionally, MP Publishing is now obligated to submit any royalty statements and payments to the author directly.

We recommend that all affected authors review their MacAdam/Cage agreements, assess whether their e-book rights have been licensed to MP Publishing, and confirm that MP Publishing is paying them the royalty rate stated in their original publishing agreement. These authors should also inform MP Publishing that print rights have reverted to them and should request that they be sent royalty statements and royalties due to them from the sale of the electronic form of their books.

The owner of MP Publishing, Mark Pearce, has indicated that he is open to communicating directly with authors and can be reached via email at:
1 For background on this issue, a good summary can be found here.
2 See Section 365 (n) of the Bankruptcy Code here:
3 Some of the books were listed in error as the titles had already reverted to the author prior to the license agreement or e-book rights had not been granted to the publisher in the first instance.


Stevie Fitzgerald, Esq.
Legal Fellow
The Authors Guild
31 East 32nd Street, 7th Floor
New York, NY 10016
(212) 563-5904

Dayne Sherman resides in Ponchatoula, Louisiana. He covers the South like kudzu and promises that he never burned Atlanta. He is the author of Welcome to the Fallen Paradise: A Novel. His website is

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