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One of the hats I wear in the real world is a Information Security Officer and what my pals in hte area have told me is it depends on the configuration of your firewall. If your firewall allows amazon's data to be streamed back to them of course they can inventory your kindle. However I have configured my firewall with strict rules on who is allowed to initate outbound communications and the list of them is very short: the web browser, email and my internet security software. Amazon is not allowed to do an outbound communications and they can't tell. Then there is the other question - there are millions of kindle out there with millions ofbooks on them to colate and make sense of the data is a rather dawnting task and would probably take all of Amazon's computing resources to process, leaving nothing left over for selling things. I don't think amazon wants to know whats on your kindle, it would be beyond the computing powers of their servers to find out.
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