> (1) A derivative work prepared under authority of the grant before its termination may continue to be utilized under the terms of the grant after its termination, but this privilege does not extend to the preparation after the termination of other derivative works based upon the copyrighted work covered by the terminated grant.
The naïve way I read that is that Penguin can continue to sell any work they prepared under the previous grant. They just can't make any new editions. Is that the case?