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Originally Posted by DiapDealer
I'm afraid I don't follow at all. If I wipe my old device and sell/give it someone else, how is it still going to "show up there as being active" for the purpose of simultaneous device usage? Even if it's wiped and still left registered to my account (for whatever reason) how is it going to affect the simultaneous use count of a book that's no longer downloaded to it? And if the device/app is no longer registered to a users account, how could it possibly count toward a book's simultaneous use count?
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Wiping the device doesn't de-register it, you have to de-register it from your account manually afterwards. That goes not only for Amazon, but also for Dropbox, Adobe and everyone else.
Also wiping doesn't remove content from the wiped device, as far as the content provider is concerned. I had a similar instance recently with paid software. I wiped my old tablet and sold it, but when I wanted to activate said software on my new tablet, I couldn't, because I had reached the usage limit. I should have uninstalled it from the old tablet before wiping it. But people don't generally uninstall and deregister everything one by one, they just wipe and reset to factory settings.