Also, although Sony's Reader and the Nook recognize ePub, neither device can read most of the e-books downloaded from the other company's store. That's because, much as in the early days of digital-music sales, publishers demand that the files come with protections against piracy.
As most readers of this site know, Sony's ePub books can be read on a nook (or any other reader that supports ePub and Adobe Digital Editions). Barnes and Noble is reportedly working with Adobe for a future update that will allow their ePub files to work on other readers.

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