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I don't know what criteria Smashwords uses for identifying and verifying pirated works. I do know that I spotted, and reported, two blatant pirates just this past weekend who posted obviously pirated works (including current best sellers like 50 Shades of Gray) and they were pulled Monday morning. I assume Smashwords isn't big enough to provide 24/7 oversight.
In the case of older back-listed items, where many authors do switch to self-publishing, it probably would be helpful if the current rights-owner contacted them.
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