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All you need is one savvy folk to figure out a way to crack the algorithm used (I'm assuming its randomly generated) and then apply it to pirated versions as they are downloaded. While that's certainly more complicated than I could manage, its not like it hasn't been done before.

Think of it as the next step in keygens.

That being said, won't this just mean that it really just takes a decently clever hacker to grab the e-book from a totally innocent person and then just set it up pirated and damn the consequences? Would you hold the e-book holder responsible if you couldn't catch the hacker?

What a dull idea that won't get off the ground.