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Originally Posted by macrotor
That is the point Mobipocket is making. He claims that the credit card must be stored somewhere if it doesn't require you to input it each time you read it. However, I think MobiPocket must not have had his coffee yet, for he usually knows better. An application doesn't have to store the actual password in order to remember that it has received a valid one in the past. It just needs the accompanying hash and a bit-set saying "mission accomplished" somewhere. eReader will be hacked when they find this bit.
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If what you are saying is right, then, it means the file is decrypted (either the "accomplished" flag is stored inside the book itself, or in a file near the book), but the fact is that the decryption is mainly done... ie one can copy/paste the files on another PDA to read the book... Where's the DRM here ?