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The easiest fix from Amazon would be an apology for not attempting to work this out without threats of legal action and to simply add MOBI support for DRM to the Kindle. Then there would be no problem using library books and the product would be open to books for sale by other dealers. If they still insist on hiding the PID then they could provide a method via their DRM tools to provide this to the vendors using overdrive and mobi drm tools. After all they own Mobi and supporting mobi still makes money for them.
Dale
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