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I look at it this way - (and I don't have a lot of device-specific DRM'd files) - If I sell my device to someone else I take my books off and remove the PID from my account. If on the other hand I pass the device along to a family member, my gf or one of the kids for example, I have no problems leaving the PID on the account and books on the device.
That's just my take on it.
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