Apple Demands 30% Cut from iBooks Author Sales

Apple’s end user license agreement (EULA) for the iBooks Author app states that any work created with the software bearing a price tag must be distributed through the iBookstore. Only free books can be distributed any other way.

The agreement specifically states that “If you charge a fee for any book or other work you generate using this software (a ‘Work’), you may only sell or distribute such Work through Apple (e.g., through the iBookstore) and such distribution will be subject to a separate agreement with Apple.”

That separate agreement says Apple gets a 30% cut, just like regular iOS apps. While some developers have no problem with this system — i.e. those whose apps generate a lot of revenue — other are having a hard time maintaining a profitable business.

And if you want to sell a book through the iBookstore, that book also has to pass through Apple’s net. In other words, you can also get rejected.

B. Distribution of your Work. As a condition of this License and provided you are in compliance with its terms, your Work may be distributed as follows:

(i) if your Work is provided for free (at no charge), you may distribute the Work by any available means;

(ii) if your Work is provided for a fee (including as part of any subscription-based product or service), you may only distribute the Work through Apple and such distribution is subject to the following limitations and conditions: (a) you will be required to enter into a separate written agreement with Apple (or an Apple affiliate or subsidiary) before any commercial distribution of your Work may take place; and (b) Apple may determine for any reason and in its sole discretion not to select your Work for distribution.

Apple pundit John Gruber, of Daring Fireball, points out to a report from Dan Wineman who says the EULA is “akin to Microsoft trying to restrict what people can do with Word documents.”