Two things.
Delete the books from the reader, and also deauthorize it from your account. You can delete the books using a simple File Manager, or using the Reader Library software. To deauthroize the reader, hook to your computer, go to the Sony Store in Reader Library and go into your account settings. It will show authroized devices, and deauthroize that reader.
Your new reader will see your library, but you will need to authorize it to your account to read DRM protected books on it.
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