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2) Use a format that is accessible worldwide (Canada and the US is key -- other countries would be a plus).
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Ideally, we'd like to have another company (e.g., Amazon or B&N) handle distribution,
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Barnes&Noble won't sell outside the US... Sony or (better, I think) Kobo will distribute world wide.
Item 5 is dependent on the reader more than the format. The newer Sony reader would allow annotation, but the Kobo won't, for example.