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So far I have only bought in LIT, that is, Microsoft Reader format. If it is copy protected (DRM) then it is called Secure Microsoft Reader format. It is possible to remove the DRM and then you can convert it to EPUB or LRF format using Calibre.
I think LIT is likely to have a long life, as it is supported by Microsoft. EPUB is the new kid on the block, and because it is an open standard, will be used more and more, and therefore is also likely to be around for a long time. EPUB is of course supported by the PRS505.
However, I did not like the formatting of the EPUB books I have seen so far, and I was not 100 % happy with the conversions to EPUB produced by Calibre - although Calibre is being actively supported and developed and is getting better and better all the time. It is a great piece of software!
If you are in the UK and buy from Waterstones, all their e-books are in EPUB format.
I would not buy in LRF format, as it is too proprietary to Sony; and definitely do not buy any DRM LRF books.
So I suggest you get hold of some free books in the different formats, and see which one you prefer.
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