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Originally Posted by DiapDealer
Not at all. I'm saying that the local file is only good for that installation of K4PC (you can't install K4PC on another machine and just copy the file over). That part's pretty easy to grasp. 
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That part I knew.
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But also, the DRM on the ebooks is tied to your hard-drive's volume serial number. So even if you had external backups of those files, if your harddrive died and you installed a new one and reinstalled K4PC... you wouldn't be able to copy the external backup to the "My Kindle Content" folder and be able to read it—even on the same computer.
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This part I guess I sort of knew but never put 2 & 2 together to realize that a backup copy wouldn't work. Thanks for enlightening me.
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Basically, I'm saying that keeping local (or external) copies of DRM'ed azw files for backup purposes is fairly pointless. When something goes wrong, you're going to have to download a new copy from your Amazon archive anyway.
Note: I'm talking about backup purposes only, here. If a user just likes having copies of everything in their Amazon Archive in their "My Kindle Content" folder, well... more power to 'em.
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I understand now. I do 'Liberate' all my ebooks immediately and keep a backup of those ebooks. Thanks for the explanation. Karma to you.
Carol