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In context with IT security it is suggested to encrypt data on portable devices like USB-sticks, so if they get lost the confidential data does remain secret. But what if they confidential material is a paper which I want to read on eReader like a Sony PRS1 or Kindle? Is there a way to password protect certain books to limit the access or maybe to lock the whole eBook?

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Just a note, the point of encryption is that is can be decrypted, so don't assume if a USB was lost the confidential data does remain secret, it just typically becomes harder to get at! –  Dave Rook Mar 11 '13 at 9:35
    
I don't think it is off topic, Since maybe there is computer software together with a firmware update to encrypt the data. –  eactor Mar 12 '13 at 8:40
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closed as off topic by Karan, techie007, Tog, TFM, Dave M Mar 11 '13 at 13:47

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up vote 2 down vote accepted

Kindle comes with a screenlock password, though I doubt it encrypts any data. Sony PRS1 might also have the same feature.
For encryption - decryption functionality you need the tool to be present on your device and since e-book readers are aimed at leisurely reading there are probably no such apps available for the device ( none that I could find). you could probably store your docs in some cloud storage like google docs and view it directly from the kindle's browser.
If you still want exactly what you specified I suggest you get yourself a tablet which I am sure have encryption tools

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