Originally Posted by Hellmark
What I think is funny is that the way they've phrased it, all of their customers could be argued as violating this. You're not allowed to have it in any storage and retrieval system, which could be said to be simply storing it on your computer's hard drive, or backing up your still DRM'ed files to any sort of backup system (be it a flash drive, hard drive, optical disk, etc).
Exactly--you can only read the book in the cloud, if you take this at face value. Downloading is a violation, so even the initial act of getting the file onto your own computer or e-reader is a no-no, let alone creating any backup.