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So...I'm not too techie, please forgive me...does this mean that if I buy a Kindle, and keep a copy of the books in my Mac's documents file as a backup, I wouldn't be able to use those backup files on any device but THAT particular Mac should Amazon stop supporting the Kindle/go out of business?
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Your assumption is correct. Without bringing DRM removal into the equation:
The ebook you "back-up" is only ever readable on the device it was downloaded for.
K4PC/Mac files are encrypted using (as one element) Volume serial numbers. If you get a new computer/harddrive/change your username, these files are useless (unless you re-download them of course).