The paragraph that most bothered him was this one:
Apple will not be responsible for any costs, expenses, damages, losses (includingHe says this paragraph means that if you submit your book to Apple and they reject it, you can’t legally sell it anywhere, at least not in that form. In other words, you would have to throw away all the formatting you did in iBooks Author and re-format it. He goes so far as to say:
without limitation lost business opportunities or lost profits) or other liabilities you may incur as a result of your use of this Apple Software, including without limitation the fact that your Work may not be selected for distribution by Apple.
Outputting as PDF would preserve the formatting, but again the license would appear to prohibit you from selling that work, because it was generated by iBooks Author.Bott says he’ll be writing more on this topic, so if you want to follow him, check out his blog, The Ed Bott Report.
Thanks to James V. Lee and Timothy J. Bruce for emailing me about this article.