This is a very complex issue, and there is no universal answer. I had to 
deal with it several times. For example, if a book is in the public domain 
in one country and still under the copyright in another, you may be liable 
in that country if you allow a user from that country to download it. In 
practice, however, it is extremely rare that anyone tries to enforce such 
laws.

I would recommend that you comply with both the U.S. and Canadian laws, 
since you may be deemed to have a physical presence (nexus) in both 
countries. As a minimum, you may ask your users to certify, when they sign 
up, which country they are from and that they are not aware of any laws 
that prevent them from using your service. I don't think there is any law 
that actually requires you to verify their representations, but you may 
want to consult with an attorney about that.

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