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She must pay up.

The fine print varies from state to state, and it's always best to talk to a lawyer, but overall, copyright law is pretty consistent. The author owns the rights to the work and, unless she specifically signs them away, she retains them no matter who publishes it. 

Some journals may assume that they acquire copyrights along with publication, but unless the journal has a published policy governing copyright and obtains a signed agreement from the author, rights stay with the writer. It's always good form to list the places where an article has been published before. If the copyright of any specific piece of writing is in question, it's best to talk with a lawyer first, especially before insulting an editor or signing away rights unknowingly.
However, in general the publication of an article is not an automatic assignation of copyright, and Dr. Dickson's editor is just trying to extort cash.

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