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Yeah, "binding" is one of those funny words. It's both a verb and a noun.

You "bind" a book when you put a cover on it (most libraries have a "Bindery Room") and the finished product is itself...

"Binding" refers to the process of adding a "cover". It just means you're not supposed to "repackage" the book. They really should have put "without the publisher's prior consent" in parentheses. ...