The only problem will be when you buy the 750 and the 800 and a second PC and then the 850, and you still have the 500 and the 505 and suddenly you're out of devices.
And the $100 lifetime "loan" with that device linked through your computer and that person who is paying the $100 won't be able to add any other DRM books.
But as you describe things, yes it would technically be legal.
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