We have experience with this on FiFoBooks.com: Paul Carr, the author of "Bringing Nothing To The Party" distributes Kindle and Nook versions of his book for free on our site, yet if you bought the ebook on Amazon.com, it would set you back $10. Peter explains the reasons for deliberately pirating his own book here:
http://techcrunch.com/2009/12/19/bri...-to-the-party/