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I think there could be a huge market, but the readers need to be a lot faster first. My experience is in the sciences, but there all journals and a lot of books are accessible as pdf (a4 or letter size) and most people I know do not look at the paper versions any more. They do tend to print out most things they actually want to read though.
Scientific publishing is probably the largest electronic publishing market at the moment anyway, and the nice thing is that the worst DRM the academic journals use (that I have seen so far) is watermarking.
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