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My friend, who's very publishing-savvy, was pleased by the contract terms, which give him 63 percent of any sales made directly by Google and 45 percent of any sales made by resellers. Royalties are even based on the list price (not the net price) if an author's e-books are sold at a discount. What's more, the author gets to set the price and define the territory where the book is available, and--if he changes his mind--he can cancel the contract at any time.
According to THE ECONOMIST--and to judge from my publishing-savvy author friend's reaction--Google Digital Editions could give Amazon a run for its money while providing a healthy boost to the e-book market.