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Originally Posted by JSWolf
MS Reader format aka LIT was the precursor to ePub.
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A precursor only in the sense of earlier than epub 2.0
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Microsoft Reader is a discontinued Microsoft application for reading e-books, first released in August 2000, that used its own .LIT format. It was available for Windows computers and Pocket PC PDAs. The name was also used later for an unrelated application for reading PDF and XPS files, first released with Windows 8 - this app was discontinued in 2018.
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The MS LIT format was based on the compressed HTML and likely similar to old CHM files, but with DRM. It was released a year after OEBPS 1.0 (1999) which was used dedicated ereaders. The LIT was released for Windows CE and Windows 95. It wasn't on NT, Win98, 2000 & ME till 2003 and much later on XP.
LIT files used a server to unlock DRM, which was switched off. EPub optionally uses Adobe Digital Editions. So AZW3 was built so Amazon could use their own DRM (which is purely based on device ID)
OEBPS is the real precusor to epub 2.0
OEBPS public release in 1999 and reached 1.2 in 2004. The next major release saw it renamed to epub 2.0. Nothing to do with MS LIT format.
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Open eBook (OEB), or formally, the Open eBook Publication Structure (OEBPS), is a legacy e-book format which has been superseded by the EPUB format. It was "based primarily on technology developed by SoftBook Press".[2] and on XML. OEB was released with a free version belonging to public domain and a full version to be used with or without DRM by the publishing industry.
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https://en.wikipedia.org/wiki/Open_eBook
Softbook (1998) and others used OEBPS which was renamed to epub at version 2.0
https://en.wikipedia.org/wiki/SoftBook