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Amazon does own Mobipocket.com. They both sell basically the same content (as far as books are concerned) but use differnt DRM schemes. Books from Mobipocket DO NOT work on the Kindle (without DRM stripping). Kindle books can only be read on the Kindle, iPhone or iPod Touch (unless the DRM is stripped).
Amazon also sells a small number of books in a format called "Topaz" which cannot be stripped of it's DRM (as Sony's LRX format cannot be stripped).
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