Apple released iBooks Author when they announced iBooks 2 last month, and immediately after their new End User License Agreement was the subject of controversy, because it specified that the works created with the tool could only be sold on the iBooks Store and through Apple services.

Apple released a 1.0.1 update for the app today, listing a revised EULA that states that Apple is only requiring products to be sold on their channels if the work is in their .iBooks format, which only works with iBooks anyway. Text or PDF files can be sold as authors see fit. Ofcourse this is all for paid books only, with free works having no restrictions at all.
iBooks Author 1.0 EULA:
IMPORTANT NOTE:
If you charge a fee for any book or other work you generate using this software (a “Work”), you may only sell or distribute such Work through Apple (e.g., through the iBookstore) and such distribution will be subject to a separate agreement with Apple.
iBooks Author 1.0.1 EULA
IMPORTANT NOTE:
If you want to charge a fee for a work that includes files in the .ibooks format generated using iBooks Author, you may only sell or distribute such work through Apple, and such distribution will be subject to a separate agreement with Apple. This restriction does not apply to the content of such works when distributed in a form that does not include files in the .ibooks format.
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