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By lowering the barrier to obtaining legal content, the Kindle is much more likely to reduce infringement than it is to increase it.
Having said that, it is inevitable that infringing material will be converted. I wouldn't be surprised if some of it showed up on Amazon through the self-publication facility. At that point, Amazon is going to be forced into the position of gatekeeper, either by removing offending material at the request of publishers, or by scanning materials at conversion time.
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