At last month’s Apple Education Media Event which was held in New York City, iBooks Author was announced as a free tool in Mac App Store which enables instant creation of textbooks and resembles a cross between Keynote and Pages. An update to the iBooks authoring tool has recently gone live the Mac App Store taking it to version 1.01 which changes the program’s EULA (End User License Agreement). The new EULA says that Apple has rights over the format a book is in, not the content.
As noted by TUAW, the updated EULA clarifies that:
If someone wants to charge a fee for an .ibooks formatted file, that document can only be sold or distributed through Apple, and that work will be subject to a separate agreement with Apple. The restriction does not include works distributed in non-.ibooks formats (such as the Kindle).
iBooks Author allows for easy drag and drop arrangement of pages and authors can even wirelessly stream their books to the iPad for previews. The update is free just like the app itself and has a size of 143.50 MB.