Originally Posted by Kali Yuga
From what I can tell, and note that I have not seen the contracts in question:
The authors signed with the subsidiary at the 6-8% rate.
The contracts with Harlequin (not the subsidiary) said "with unspecified digital rights, you get 50% of what Harlequin receives." Since what Harlequin got was 6-8% from its subsidiary, they cut that in half for those ebook royalties.
I don't understand your math. If the author was supposed to get 6-8% from the subsidiary, and Harlequin got was 6-8% from its subsidiary, at most you can argue that the authors would get 6-8% of the 92-94%. How do you get their royalties cut in half if they didn't sign with Harlequin?