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A useful data point would be: How often do libraries buy replacement hardcovers or paperbacks for books that have been worn out? I honestly have no idea.
While I'm definitely a library supporter and generally a supporter of free exchange and DRM-free ebooks, I have some sympathy for the publishers on this one. Should ebooks in libraries really be infinitely lendable, especially if they're purchased at regular retail price? I'm not so sure they should be. I try to make my own ebooks DRM-free, but that's with an implied social contract that the purchasers will not share them with an unlimited number of their closest personal friends (or all of their Facebook pals).
I do think 26 is way too low a number--maybe 100 would be better, if this model goes forward. But maybe a preferable model would be, charge a "library binding" price and say it's a forever-license.
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