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Originally Posted by Justin Nemo
From what I remember ADE is a desk top application which end users download onto their PC.
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Yes, it is, but Adobe also write the ePub (and PDF) firmware that pretty much all reading devices use to display ePub/PDF books. They used to call this mobile software "ADE" too, but I think they call it something like the "Adobe Mobile Software" these days. I see you have a nook - look at the page on it which displays the "legal stuff" - I'm sure you'll see a credit for Adobe on there.
EDIT: It's called the "Adobe Reader Mobile Software Development Kit". See:
http://www.adobe.com/devnet/readermobile.html
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So who is paying them a very nice royalty fee?
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Every reader manufacturer who licenses Adobe's firmware: Sony, B&N, Kobo, Pocketbook, etc etc. Basically everyone (other than Apple) who makes a device which supports ePub. They all use Adobe's firmware.
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As mentioned in the original post, this is a whisper so there is no official link to give. Are you the depository of all ebook knowledge? If not then you maybe wouldn't have heard about it.
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What I'm asking is where YOU heard it. A technology website? A blog? It's the kind of news that would probably make headlines on the "gadget" sites. I'm surprised not to have heard about it, and I'd be interested to know more, because it seems like a strange move on Adobe's part, given their massive investment in ePub.