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Therefore, if you were to persist on wishing to relinquish your status as a
published author, we can only grant your request if you agree to a $300
damage payment, which will help to offset some of our losses
Extortion.
They are holding your book hostage.
I would send a copy of this correspondence to the Chair of the State of Maryland's legislative Business Regulation Subcommittee along with a covering letter explaining your situation, and copy the whole thing to the person who had the nerve to send you this letter.