Apple's iBooks Author hands-on -- Engadget.
Apple confirmed to us that you can publish classroom materials for free and that each book will be approved in the same way that the App store approvals process works. Copyrighted works (if you utilize any) will have to be strictly cited and referenced in order to pass muster. You'll be able to publish books for free, all the way up to $14.99: with a fixed profit-share model of 70/30 between yourself and Cupertino. Most importantly of all, any book that you publish must be an exclusive to iBooks.