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Wow - then either Lulu don't expect to sell many encrypted ebooks, or they're looking to take a much larger cut from anyone foolish enough to pay for the DRM.
I would suggest that they're trying to discourage DRM use, but in the options pages, the default setting is with DRM checked on.
Even $0.22 seems an awful lot for DRM. Mind you, since I think that DRM is positively detrimental to all parties, including publishers, any cost would be too much.
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