I'm pretty sure the author gets royalties. If the contract is such that the publisher has the right to publish electronically (i.e., it used broad enough language to encompass a technology that wasn't yet out there) then the contract would no doubt provide for royalties, since it's hard to believe that any contract would grant any sort of rights without providing for the author to get his share. If the contract doesn't grant electronic rights, then the question doesn't come up.
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