Do you remember the lawsuit between Rosetta Stone and Random House about 9 years ago? It was the first lawsuit in the US over whether or not contract written before ebooks existed could also convey ebook rights. Rosetta won, btw, because the literal statements of the contract outweighed the implied agreement.
We're seeing something like that right now in China. Hanvon is being sued by a publisher, Zhonghua Book Co. The dispute in this case is on whether the company that Hanvon paid royalties to, Beijing Guoxue Times Culture Co Ltd, had legal rights to the digital content.
Due to the language conflict I don't have all the info. But it looks to me like this isn't just a simple piracy issue. The outcome of this court case will probably have a permanent effect on digital publishing in China.