From today's New York Times:
In 2010 Ms. Davenport signed with Riverhead Books, a division of Penguin, for “The Chinese Soldier’s Daughter,” a Civil War love story. She received a $20,000 advance for the book, which was supposed to come out next summer.
If writers have one message drilled into them these days, it is this: hustle yourself. So Ms. Davenport took off the shelf several award-winning short stories she had written 20 years ago and packaged them in an e-book, “Cannibal Nights,” available on Amazon.
When Penguin found out, it went “ballistic,” Ms. Davenport wrote on her blog, accusing her of breaking her contractual promise to avoid competing with it. It wanted “Cannibal Nights” removed from sale and all mentions of it deleted from the Internet.
“They’re trying to set an example: If you self-publish and distribute with Amazon, you do so at your own risk,” said Jan Constantine, a lawyer with the Authors Guild who has represented Ms. Davenport.