Amazon made headlines today with a deal that will make Kindle the exclusive e-book publisher (for two years) of 20 classic works from authors such as Vladimir Nabokov, John Updike, and Norman Mailer. Amazon forged the deal for the digital titles with literary agent Andrew Wylie's new imprint, Odyssey Editions.

But Random House, which originally published many of the books in print, says it sent a letter to Amazon last night "disputing their rights to legally sell these titles which are subject to active Random House publishing agreements." Random House warned that after assessing its options it will take "appropriate action."

It's all part of an emerging tug-of-war over older backlist titles, many of which predated electronic books and the concept of digital rights. Such titles often produce a steady stream of revenue for publishers — and are a key focus in the growing e-book market.

Post updated with reaction from Macmillan and The Authors Guild.

Here's the full statement from Random House spokesman Stuart Applebaum:

We are disappointed by Mr. Wylie's actions, which we dispute. Last night we sent a letter to Amazon disputing their rights to legally sell these titles which are subject to active Random House publishing agreements. Upon assessing our business options, we will be taking appropriate action.

Random House CEO Markus Dohle sent a letter to literary agents back in December asserting that the publisher had digital rights to books that it published in the pre-electronic book era.

Applebaum said that since the letter Random House has had "fruitful discussions" with many literary agents and has arrived at "mutually agreeable financial terms with them" on e-book editions. He declined to specify what kinds of action Random House might take against Amazon or Wylie.

I'm reaching out for Amazon for a response to Random House's statement.

Amazon said the 20 works that are part of the Wylie deal — including Nabokov's "Lolita," Updike's Rabbit series, and Mailer's "The Naked and the Dead" — will sell for $9.99 on Kindle. The online retail giant has done a number of exclusive e-book deals for Kindle (see here, here and here).

The New York Times has more on Wylie's new publishing venture.

Update: Macmillan CEO John Sargent, who has had his own run-ins with Amazon over e-books, also weighs in on the Wylie deal. In a blog post, Sargent welcomes Wylie to the publishing world but writes:

I am appalled, however, that Andrew has chosen to give his list exclusively to a single retailer. A basic tenet of publishing is that our function is to reach as many readers as we can. We disseminate our books and the ideas within them as broadly as possible. I understand why Amazon wants an exclusive deal with Andrew. They have asked us too for exclusive product, as has every major retailer we deal with. This is smart retailing, and a great deal for Amazon. But it is an extraordinarily bad deal for writers, illustrators, publishers, other booksellers, and for anyone who believes that books should be as widely available as possible. This deal advantages Amazon, which already has the dominant share in this market.

Update: Random House spokesman Stuart Applebaum later issued a statement saying the publisher is splitting with Wylie.

The Wylie Agency’s decision to sell e-books exclusively to Amazon for titles which are subject to active Random House agreements undermines our longstanding commitments to and investments in our authors, and it establishes this Agency as our direct competitor. Therefore, regrettably, Random House on a worldwide basis will not be entering into any new English-language business agreements with the Wylie Agency until this situation is resolved.

Update: The Authors Guild, which represents more than 8,000 writers, adds its voice to the debate. In a blog post, the Guild says authors retain the digital rights to their older works unless they've expressly granted them to another party. But the organization also sees "serious potential conflicts of interest" when a literary agency — such as Wylie — takes on the role of publisher. And it raises concerns about the exclusive nature of the Wylie deal with Amazon, writing that "Authors should have access to all responsible vendors of e-books."

The Guild is highly critical of Amazon, adding:

Regardless of the exclusivity issues, any direct agreement between a literary agency and Amazon is troubling. Amazon has, time and again, wielded its clout in the industry ruthlessly, with little apparent regard for its relationships with authors or publishers or, for that matter, antitrust rules. Any agency working directly with Amazon may find its behavior constrained in unpleasant and unpredictable ways. Agencies should proceed with extreme care.

The Guild also makes some "informed guesses" about the structure of the deal between Wylie's Odyssey imprint and Amazon, estimating that authors would receive 60% to 63% of the retail price of the e-book under the Odyssey-Amazon deal, a big increase from the 15% to 16% they would get under a typical publisher contract.

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