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Originally Posted by EatingPie
There is book piracy. And authors do not make money off pirated books. Plain and simple.
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Authors do make money off pirated books, if the piracy leads them to new readers who buy the next book. Even if it only leads to new readers who read at the library, it convinces libraries to buy more books. If the pirates write reviews that convince other people to buy the books, the authors make money off the piracy.
Authors "don't make money" off used or borrowed books, either, but there's no big campaign to stomp those out--because authors are aware that "read without buying it new" doesn't mean "I got no benefit from that person's reading." (Well, they used to be aware of that. It seems an awful lot of them want to believe otherwise these days.)
They very likely don't make as much as they would have if every download were a sale. But every reader was never a sale (used and borrowed books have always been a substantial part of reading communities), and every download isn't even a reader; a lot of them are just files moving around between computers and never being viewed.
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The Big Brother idea is also legitimate. Look at what Amazon did with the Kindle version of 1984. What's to stop them from doing it again... or any other company that has cellular access to your e-Reader?
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Simple answers to that. Limit use of wireless readers, and keep a backup copy in a non-internet location. To avoid corruption/removal of your online data, keep archives offline.