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The annotations are stored as HTML in the column. You can do whatever you want with it. If you create more annotations on the device for the book, the next time you fetch them, it will merge them together.
As to usage, the main thing I use the annotations for is to mark errors in the books. Then, I fix them. Afterwards, I delete the annotations. But, I have cut-and-paste them to other places to send somewhere. It works OK.
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