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Originally Posted by Michele
Ereader... file extension of their books...
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eReader uses their own format and DRM, which is different from .lit, .pdf, mobipocket and others. One advantage of eReader DRM is that it is unlocked by your credit card number. So there's no chance of "using up" licenses when, say, you have to rebuild your PC or buy a new one, etc. And if you trust someone enough to give them your CC#, they can technology-wise read your books. Obviously that's a very limited group of people so it pretty much eliminates any chance of piracy. On the other hand, you can only read the books on eReader software which is not available on e-ink devices, and if they ever go out of business, new devices will never be supported for reading those books.
I think we will find that if Sony can work out their pricing issues and successfully continue to add content, people will in general be okay with that. One needs to remember that it's not the best way to build a library (you can only read the books on the Sony reader or future Sony devices that support the same format), but for getting books to read on a great device that you don't plan to keep around afterwards, it's not too bad. You can't give the book away when you're done, but you do get to read it in e-ink.
But that does seem to depend on seeing pricing glitches worked out a continual flow of new content...