Apple updated iBooks Author to version 1.0.1 on Friday afternoon, the only change being an update to the software's controversial end user license agreement. The updated EULA now specifically only applies distribution restrictions to the interactive .ibooks format files generated by the app.

Some felt that the original EULA suggested any "works" created using iBooks Author could be given away without restriction, but if money was charged, it would have to be sold via the iBookstore:

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.

Naturally, many authors and would-be publishers were wary that Apple created a legal loophole to control where their content could be sold. We consulted several lawyers on the issue, who agreed that the wording was vague enough to allow such restriction, and might even be legal according to contract law. However, it was also possible that if Apple were to use the EULA to control sales of content outside the iBookstore the company could open itself up to an antitrust challenge in court.

The new EULA, however, specifically applies the iBookstore distribution limitation to the interactive e-book saved in .ibooks format. It is now clear that the content itself, including the text, images, or any custom code, can be distributed in other forms and formats without restriction. The updated EULA reads:

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.

The restriction is somewhat moot, however. Only iBooks 2.0 on the iPad can even read and display .ibooks files, so there's little advantage to trying to sell such e-books outside of the iBookstore. Still, authors and publishers can rest assured that Apple can't and won't try to lock down their content to its platform.

Listing image by Photograph by Luis Guillermo Pineda Rodas