The artist gives her side of the story on her website. She states that they approached her and offered her $4000 for use of the image, which is apparently a pretty standard fee.
She refused the offer because she had already licensed the image for one book cover (The Indie Author) and she didn't feel it was appropriate to have the same art on two books. Her counter was an offer to do another piece of artwork for them in the same artistic style - but different enough to not be a duplicate. HC never really responded to her counter-offer and she thought that HC had just decided to go in a different direction and forgot about it.
Then the author of the first book contacted her after spotting the cover of the second book, wanting to know what was up.
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