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In terms of use, you have purchase a copy of a book with us, and it is your copy. You may authorize any one you wish to read it, but that person's device must be registered to your account to do so.
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I think the first part of this is important. You OWN your copy of the book and are entitled to let a friend read it. Technical problems with doing that aside - this is what I had expected/hoped to be the case.