The trouble with open epub non-DRM library books is they can't be returned early. If you borrow one and finish it in a day you are stuck with it taking up one of your checkouts until the loan period expires. If your library allows only a few checkouts at a time, this can be a problem. I avoid borrowing open epub library books for this reason. If my library starts carrying Smashwords books I hope they will have library DRM.
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