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The difference is a matter of scale. I believe the loaning of books is allowed the same way you could loan out a physical book to a friend, etc. Loaning out a digital book to n people is just not the same. Likewise, libraries, which do loan out physical books to n people (but still less than is possible with a digital loan), pay more for their books for this very reason. If you want to loan out your digital book to n people, then you are going to have to pay a lot more for it (and that is just not part of the current equation).

IIRC, you can only loan a Kindle book exactly once and to one person.

They're being unreasonable and pushing people who cared enough to to jump through that to just buy or pirate it.

Yup, each buyer can only loan each book 1 time. http://www.amazon.com/gp/help/customer/display.html?nodeId=2... And only on books where the author explicitly allows, which makes this takedown even sillier.

Theres a bunch of cases where physical book costs less than the ebook. Most are roughly the same. I assume margins are greater on ebooks as well, no cost to print them, no transportation cost, no shipping cost.

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