diff --git a/CHANGES.txt b/CHANGES.txt
--- a/CHANGES.txt
+++ b/CHANGES.txt
@@ -1,5 +1,7 @@
 Changelog for Derive
 
+2.5.20
+    #5, fix regression with higher-kinded constructors becoming context
 2.5.19
     Support GHC 7.10
 2.5.18
diff --git a/Data/Derive/DSL/Apply.hs b/Data/Derive/DSL/Apply.hs
--- a/Data/Derive/DSL/Apply.hs
+++ b/Data/Derive/DSL/Apply.hs
@@ -35,7 +35,7 @@
             ,out
                 [ClassA (UnQual $ Ident c) [TyVar $ Ident v]
                 | let seen = [x | TyVar (Ident x) <- universeBi $ concatMap ctorDeclFields $ dataCtors input]
-                , v <- dataDeclVars input `intersect` seen
+                , v <- dataDeclVarsStar input `intersect` seen
                 , c <- ctx]
             ,out $ UnQual $ Ident hd
             ,out [TyParen $ foldl TyApp
diff --git a/Data/Derive/Data.hs b/Data/Derive/Data.hs
--- a/Data/Derive/Data.hs
+++ b/Data/Derive/Data.hs
@@ -152,4 +152,4 @@
     where ctor = dataDeclCtors (snd d) !! fromInteger y
 
 context :: FullDataDecl -> Context -> Context
-context d _ = [ClassA (qname t) [tyVar x] | x <- dataDeclVars $ snd d, t <- ["Typeable","Data"]]
+context d _ = [ClassA (qname t) [tyVar x] | x <- dataDeclVarsStar $ snd d, t <- ["Typeable","Data"]]
diff --git a/Data/DeriveTH.hs b/Data/DeriveTH.hs
--- a/Data/DeriveTH.hs
+++ b/Data/DeriveTH.hs
@@ -14,7 +14,6 @@
 import Language.Haskell.TH.All as TH hiding (Derivation(..),toName)
 import Language.Haskell as HS
 import Language.Haskell.Convert
-import Data.Generics
 
 
 -- | Derive an instance of some class. @derive@ only derives instances
@@ -35,17 +34,11 @@
 -- for the type of the argument.
 deriveFromDec :: Derivation -> Dec -> Q [Dec]
 deriveFromDec d x = do
-    x <- fmap unkind $ liftM normData $ expandData x
+    x <- liftM normData $ expandData x
     let unsup x = error $ "Derivation of " ++ derivationName d ++ " does not yet support Template Haskell, requires info for " ++ x
     case derivationOp d (tyCon $ derivationName d) unsup $ toFullDataDecl x of
         Left y -> runIO (putStrLn $ "Warning, couldn't derive: " ++ y) >> return []
         Right v -> return $ convert v
-
-unkind :: Dec -> Dec
-unkind = everywhere (mkT f)
-    where
-        f (KindedTV x _) = PlainTV x
-        f x = x
 
 toFullDataDecl :: Dec -> FullDataDecl
 toFullDataDecl x = (ModuleName "Todo", convert x)
diff --git a/LICENSE b/LICENSE
--- a/LICENSE
+++ b/LICENSE
@@ -1,4 +1,4 @@
-Copyright Neil Mitchell 2006-2014.
+Copyright Neil Mitchell 2006-2015.
 All rights reserved.
 
 Redistribution and use in source and binary forms, with or without
diff --git a/Language/Haskell.hs b/Language/Haskell.hs
--- a/Language/Haskell.hs
+++ b/Language/Haskell.hs
@@ -6,6 +6,7 @@
 import Data.Generics.Uniplate.Data
 import Data.Data
 import Data.Char
+import Data.Maybe
 
 
 infix 1 ?
@@ -257,7 +258,15 @@
 dataDeclName (GDataDecl _ _ _ name _ _ _ _) = prettyPrint name
 
 dataDeclVars :: DataDecl -> [String]
-dataDeclVars (DataDecl _ _ _ _ vars _ _) = map prettyPrint vars
+dataDeclVars (DataDecl _ _ _ _ vars _ _) = map f vars
+    where f (KindedVar x _) = prettyPrint x
+          f (UnkindedVar x) = prettyPrint x
+
+dataDeclVarsStar :: DataDecl -> [String]
+dataDeclVarsStar (DataDecl _ _ _ _ vars _ _) = mapMaybe f vars
+    where f (UnkindedVar x) = Just $ prettyPrint x
+          f (KindedVar x KindStar) = Just $ prettyPrint x
+          f _ = Nothing
 
 dataDeclArity :: DataDecl -> Int
 dataDeclArity = length . dataDeclVars
diff --git a/derive.cabal b/derive.cabal
--- a/derive.cabal
+++ b/derive.cabal
@@ -1,9 +1,9 @@
 cabal-version:  >= 1.6
 build-type:     Default
 name:           derive
-version:        2.5.19
+version:        2.5.20
 build-type:     Simple
-copyright:      Neil Mitchell 2006-2014
+copyright:      Neil Mitchell 2006-2015
 author:         Neil Mitchell <ndmitchell@gmail.com>
 maintainer:     Neil Mitchell <ndmitchell@gmail.com>
 homepage:       http://community.haskell.org/~ndm/derive/