“You pay less, I earn more”… or how UC and Springer Nature made a seemingly win-win agreement

« And yet another agreement! While it was celebrated over the ocean as “the largest OA deal ever signed in the US” or a “milestone” for OA, we Europeans are now used to these “groundbreaking” contracts announcements every other week. So much that I have already written one in March on the German Springer/DEAL and another one in May on the Faustian Elsevier/Dutch consortium. So all things come in threes, and for a good reason, as Californians give us some food for thought on the financial side of the agreement.
First of all, it should be noted that the contract between Springer Nature (SN) and the University of California (UC) has not yet been written, but that only the Memorandum of Understanding (MoU) was made public this week. (…)
Whatever the final outcome, and one can think, given the complexity of the provisions that the UC part has run many simulations on its final bill, there are three lessons to be learned from this MoU. First, in the absence of price transparency, it is difficult for outsiders to determine whether an agreement is really financially interesting or whether it mechanically leads, as with subscription formulas, to higher prices paid by higher education institutions. Secondly, this agreement builds a link between the payment of authors and that of the university: it therefore allows the direct inclusion of research funders, while ensuring traceability and monitoring of flows for each of the parties. It also contains incentives on the behaviour of authors, who would benefit from using the UC workflow to partially or totally reduce their own payment. But it is the ability to capture money from funders, third parties to the contract, that is striking, with certainly Coalition S members in mind. (…) »

Source > polecopub.hypotheses.org, Didier Torny, 19 juin 2020