Great news from Mark Coker of Smashwords. In an e-mail to authors and publishers, he writes:
Yesterday afternoon I met with PayPal at their office in San Jose, where they informed me of their decision to modify their policies to allow legal fiction.
Effective last night, we rolled back the Smashwords Terms of Service to its pre-February 24 state.
This is terrific news for all of us writing “fringe” fiction, whether or not we thought we would be targeted by Paypal’s censorship, and terrific news for readers and authors in general. Everyone who signed petitions, spread the word, blogged, tweeted, wrote Paypal–you guys all helped bring this about. Thank you all!
Have a drink. Then go buy a book on Smashwords where a werewolf rapes his sister. Or, you know, don’t. Now, it’s your choice.