I just happened to see an article regarding this situation in my local newspaper and thought I would share a couple online articles with you. Apparently, Wylie Agency, a literary agency, is taking books that were published prior to ebook publishing and releasing them in ebook format, bypassing the major publishing houses and taking them straight to Amazon. Since there was never anything in these contracts regarding ebooks (being that they didn't exist yet), they are legally doing nothing wrong. They are getting ebooks published for their authors and trying to get them a much better royalty. There are, of course, a few different opinions on this sitch, check out J.A. Konrath's article as well.
I'm very interested to see what happens as the ebook phenomenon continues to unfold. It seems like it's really throwing the traditional publishing industry for a curve. It's definitely fascinating to watch! What are your thoughts???