Originally Posted by Argel
Can you say what makes you conclude that this is the case?
The Amazon terms state: The Device Software will provide Amazon with data about your Device and its interaction with the Service (such as available memory, up-time, log files and signal strength) and information related to the content on your Device and your use of it.
In other words Amazon make it quite clear that they will look at what you have on your Kindle. And that has presumably to be taken in the light of another condition of sale, namely: You may not use the Device, the Service or the Digital Content for any illegal purpose.
So, what if you were writing a term paper, a thesis, on Ayn Rand's Altas Shrugged. You simply name it Atlas Shrugged by Ayn Rand (since it's your device and you know where the book and thesis are saved respctively). Amazon trolls through your devie, and removes both files, since they both seem to be by Ayn Rand.
There goes your final grade. Instead of "Sorry teacher, My dog ate my homework", it's "Sorry professor, Amazon ate my homework"