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Not only is that illegal, but so is converting library books to formats they weren't originally available in. For example, if an audiobook is only available in WMA, you aren't allowed to convert it to MP3 so you can play it on your phone or tablet. If the publishers wanted you to be able to do so, they would've provided that format in the first place.
It's one thing to convert files for books you personally own, but quite another for library books. You don't own them and don't have the right to convert them.
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