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From what I know the IPPY is an award, sponsored by the people behind Independent Publisher Magazine to support and showcase the best edited collections and new voices coming out of the independent/micro-press field. There was a bestselling independent SF author who ran last year; he was in the Times, sold over 35,000 copies of his novel, had been offered major book deals but turned it down to independently publish and do his own marketing campaign -- which, nevertheless, turned out successful. I forgot his name.

For micro-presses or the Independents, however, (which probably nowadays, since anyone can have an LSI account, could be categorized into some form of the self-publishing arena) they would meet the IPPY criteria if the book is good enough.

In some respects, the award and magazine probably separates the crud from the decent self-pubbed stuff actually flooding the marketplace.