To expand a bit further on Marc's comments:
1. If you discover a site but are unsure as to its legality, PM any mod with the link and let us check it out first.
2. Any site giving away copyrighted books free is 99.99999999% sure of being a pirate site.
3. Sites offering books in ebook format that "aren't available anywhere else" are probably illegal.
There are major authors currently unavailable in ebook format that are dead giveaways for illegal sites: Harry Potter (until Pottermore goes into business), Perry Mason titles, etc.
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