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Does Digital Editions allow the user to view a PDF with security, password secure, not password to open? If not how is security set on a PDF eBook for Digital Editions?
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ADE will view PDF files secured with Password Security (version 8 and below), but only if they don't require a password to open the document (ie just a permissions password).
The primary method of securing eBooks however is by distributing books using Adobe Content Server 4, which uses a different encryption method.