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Amazon isn't distributing audio they are presenting an audio representation of the electronic text. If they stored and distributed the audio generated from the TTS engine then they have violated copyright and the contract.
Anyone that can read and speak is a text to speech engine so you can't claim the electronic book was sold without TTS rights.
This exact issue is going to come up with language translation. What happens if Amazon implements language translation technology into the Kindle? If you sold the rights to the French language translation edition to a company and then technology is introduced to the Kindle to translate the electronic text sentence by sentence and present the text on the screen in French did that violate your contract? My interpretation is no (unless they stored and distributed the translated text). What if somebody read the electronic book and had to lookup each word in an English to French dictionary. Same thing.
These are all issues that need to be clarified with new technology but IMHO he has too weak of a case for the negative media stir he's generated.
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