There is a whole thread on the Pottermore eBooks. The TOS is mentioned within.
Quote:
You may not and may not permit others to do any of the following things in relation to any book or extract:
§ sell, distribute, loan, share, give or lend the book or extract to any other person including to your friends (except in the limited circumstances explained at 12.1 above);
§ print-on-demand or copy or burn the book or extract to a device whose principal function is to act as a storage device, for example, a CD/DVD or USB stick;
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I agree it's stupid. I'd like people to remember it whilst praising Pottermore for their devotion to freedom, forward-thinkingness, unicorns, rainbows, and kitten farts.
(Ironically, if my books are side-loaded to a Sony PRS-950
where all my books are stored on a memory card, I would be apparently breaking the TOS by virtue of trying to read my books. Similarly, downloading to my cell phone via the Nook app would be breaking the TOS since my cell phone files are stored on a memory card. Fortunately, my Sony PRS-350 is apparently safe.

)