The website AppDevice claims to have proof that Apple will offer 30.000 free e-books in the iBooks Store for the iPad. All titles no longer have copyrights. The books come from the archives of Project Gutenberg: an initiative to offer free books digitally from the public domain.
Apple earlier announced digital books will come in the Open ePub format, also used by Project Gutenberg. Those e-books can be read by importing the books via iTunes. Apple probably wants to prevent a strong number of Gutenberg-bookshops to appear by offering these books in the App Store.