This is quite interesting because it goes far beyond Google's plans for out-of-copyright and OOP books. I like the idea of having the book files in the cloud, but I don't see why they have to be on Google's servers. There's no reason they couldn't reside on other servers. The main idea, though, is that readers would have permanent rights to their e-books, and that they could read their books on any hardware platform. This would solve a big problem and prevent monopolistic companies from dominating the e-book market. The other good idea is that with the spread of the Espresso Book Machine and similar instant book printing devices, this model would support rather than undermine independent bookstores.
Two big questions about e-book licensing remain unanswered: can these books be re-sold and can they be bequeathed as part of an estate? I think the answer for e-books will always be negative because publishers will not want to lose control of the content or to allow a used e-book market to open up.
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