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I don't see any pirated software on their site. I see devices that emulate an Apple device - and there are a lot of them - but nothing that is pirated. That is simply misinformation.
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Looks closer then at their WM phone products.
Their "HTO" phone are using HTC Touchflo software, for example. I doubt HTC licensed their software to a company cloning their products -they never licensed it to other regular manufacturer-.
Windows Mobile is not free either. They don't appear on Microsoft list of licensee, and anyway I doubt MS would approve to have Windows Mobile ships on an Iphone clone
If you see a reputable website selling "device that emulate an Apple device" where I see a website selling cheap Iphone or HTC fake, your choice.
My main point is that i don't understand all the excitement around this product.
As we both agree, this is hardly the only device able to read ebook.
Even it's it the only one having a small 7" tablet form factor, there are many other device that have their own unique form factor, are not really more expensive, and are manufactured by serious company.
Many of them running on more established platform than ARM + Linux, with already many ebook reader software available.
If you know your way around Linux on ARM devices and know how to hacks it to run other distri/sotware, it probably a good choice. But for anyone else just looking for a non-eink reader/Multipurpose device, my guess is that they are going to be disappointed in the end.