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As an author/publisher of ebooks I'm in favor of libraries charging a small fee for ebooks, and not because I can make a handsome profit (I make $0.30 - $0.50 on the majority of my $0.99 ebooks sold online now).
Libraries can't continue to depend upon government financing to exist, and they certainly don't earn enough money from library cards or late fees to cover their overhead.
Personally, I'd rather see the profit presently kept by retailers and distributors for my ebooks go to support libraries.
As for free books, I'd be more than happy to provide some of my ebooks to a library for free after they've been at retailers for a few years and I've earned something for my effort.
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