Some (most) of their multiformat offerings are available for the Sony Reader. All new multiformat offerings are available for the Sony Reader. These are books and magazines (like Analog) that allow Fictionwise to distribute them without DRM. This means that no current best seller is currently available in multiformat.
Only the Sony Connect store sells DRM books for the Sony.
Now DRM is short for Digital Rights Management which is a restriction on the usability of the file. It can only be read on certain devices and by certain people (i.e.: you.) You may not transfer the book to someone else and it is restricted to devices that are registered to you and your account. Publishers believe that DRM protects their rights and ensures that everyone who wants the book pays for it. The Sony Reader supports only one type of DRM, their own DRM.
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