Friday, May 09, 2014

Class action claim against Harlequin Books for e-book royalties upheld by 2nd Circuit

In Keiler v. Harlequin Enterprises, a class action royalty claim on behalf of authors whose works were being distributed as e-books by Harlequin was sustained, and the lower court's dismissal of the complaint reversed.

The complaint alleged that Harlan, in a scheme to deprive the authors of their contractual royalties for e-books, had established a subsidiary, was paying royalties to the subsidiary at a below-market rate, and was paying the authors based on the low receipts of the subsidiary rather than on the actual receipts of Harlan itself.

May 1, 2014, US Court of Appeals for 2nd Circuit

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