Amazon’s Kindle Worlds – Monetizing fanfic

This morning Amazon announced that they’ll now be capitalizing on the grey-zone world of fan fiction with a new market that they’re calling Kindle Worlds.

Publishers would have to agree to allow for fanfic to be produced and they would take a cut of the money for it, but still… I wonder what happens in the event that a publisher likes fanfic better than your original work? Could you potentially lose the rights to your own intellectual property?

Reactions from authors have been varied.