You can go all over the place with ethics and legality on things like this. I know that the local used bookstores here charge less than $2 for a book, so in the end the percentage that would go to the author would be very small. Also, if you think about it, you buy a car, that money goes to the manufacturer(mostly), they are not paid in full for their materials and effort, advertising, all that good stuff. For "Ford" to get paid over and over every time the car changes hands is crazy. Let us go back in time to simpler economics. Farmer Jones sells a cow valued at $25 to Farmer Cooper for $25. Farmer Jones is paid in full for the value of the cow. If Farmer Cooper decides the next season to move and sells the cow again for $20 to Farmer Smith there is no reason for the first farmer to receive anything, if he got half of that sale($10), then he would have gotten a total of $35 for a $25 cow.
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