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No offense, but I see many of these sites becoming the very type of thing that got the original version of Napster in trouble. What kind of checks and balances will you provide to ensure that people aren't using your site to spread pirated copies of ebooks?
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This. The phenomenon, imo, also shows that average readers (i.e. not 'pirates') do respect DRM restrictions, but will quickly adjust according to their limits when lowered. Remove DRM entirely and that lending site becomes a giving site. Which highlights what DRM is really meant to prevent: not organized pirating, but casual copying/sharing.