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http://jakonrath.blogspot.com/2012/0...il-part-2.html

So why are authors suing Harlequin?

Because Harlequin and Company X are the same company.

In other words, it is sub-licensing the rights it holds to itself. Then it only has to pay the author 3% instead of 50%.

That's seems pretty shitty. It also doesn't seem like something a judge or jury will casually dismiss, even if Harlequin made sure it kept the two companies separate through an umbrella company.

No publishing company would ever sub-license rights for a paltry 6%, unless it was selling the rights to itself. Does Harlequin really expect a judge to believe that it sells a $3.99 ebook and only makes 6 cents?