Palm Digital Media today announced a new version of the Palm Retail Encryption Server Software that provides libraries with a way to let patrons check out Palm Reader eBooks. The announcement came at the Open eBook Forum's Tablet PC Digital Publishing Conference held today at McGraw-Hill Auditorium.

The company said the software's Digital Rights Management process uses a hardware identification number assigned by the Palm Reader eBook application to a handheld or desktop computer. The server uses this ID to lock an eBook to a specific device and assign an expiration date to the eBook, beyond which the user will not be able to open it. This DRM protects the eBooks against unauthorized distribution.

OverDrive, a provider of eBook, eCommerce and Digital Rights Management solutions, is adding the new server software to its Digital Library Reserve service for public, academic, and corporate libraries.