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Baen always asked people to send others directly to their official site to get the Free Library books, rather than pass them around themselves on the internet.
Even the Baen CDs come with a requirement that the entire CD has to be redistributed at once, and not broken up into individual books to send to others (though apparently it was okay for the 5th Imperium to just put the entire CD online and have people browse through the directories like they were looking at the CD on their own computer to pick the books they wanted).
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