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It could be that the no downloading...etc. notice is in relation to the issue of DRM. i.e. you can't download and store it legally except that it is used on the reader that is approved. So for example downloading an epub (whose DRM you then break) and converting it to read on a kindle would be against the law. How they would be able to enforce that is a very good question. With how many people every day buy ebooks and possibly do convert them for a different reader they'd have no time for anything else but running down potential violators of the notice.
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