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You can read the full interview here, and head over here to check out the official Dragon Empires website.
How will hostile takeovers of Clan cities be handled?
Peter: First a clan who wants to take a city must register their interest. They do this in a single empire. Once registered they should start working to increase their clan status. This is done through fighting outlaws raiding that particular empire. At the end of a political cycle (1 week), the cities are all tallied and if a city in that empire is performing poorly then the clan who is challenging and has the highest score from the PvP fights will be set to fight to take over that city. Once the attacking clan is declared a time and date is set for the battle.
At this time, both clans must fight and the winner gets to own the city. The fight takes place at the city with the attackers starting on the outside and needing to fight their way to several capture points. If the city is captured by the attackers they get to set a new tax rate and trade specialty (what type of goods are produced more efficiently than other goods in that city).
Richard J. Cox
"There were much of the beautiful, much of the wanton, much of the bizarre, something of the terrible, and not a little of that which might have excited disgust."