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Originally Posted by nimblem
Well... I am guessing as long as the the person loan out the book deletes it from their device while it is being loaned out then the legal issues would be taken care of. I know that in reality the chance of the book being removed from either device during or after the loan period is slim to none.
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The first problem is that the legal issues haven't even been fully tested yet. The second problem is that the digital music scene has already taught us what happens to sites that facilitate filesharing. Do you remember the "old" Napster? I would really hate for someone to decide to use Intenex to set an example. It was only recently that a slew of sites got shut down for copyright issues - not just music and movies, but also counterfeit merchandise.
I'm certainly not implying that Intenex or you are looking to engage in deliberate piracy, but others will be, and allowing this on the site is like providing a matchmaking service for pirates. The honor system is not enough when you're dealing with strangers on the internet. I wouldn't even trust my friends to play by the rules on this, let alone someone I didn't know. Adding that capability to the site would attract the wrong kind of people.
As long as there is no control over the actual file, the way there is with Nook or Kindle, then no one can control who is doing what with those files. You said it yourself - the chances of people playing by the rules are slim. It's spelled out in the licensing when this is or isn't allowed. Some authors, publishers and retailers are awesome and don't infect their files with DRM because they are trusting people not to do this very thing.