We found that livers from woodchucks chronically infected with woodchuck hepatitis virus (WHV) contained covalently closed circular DNA (cccDNA) molecules with deletions and insertions indicative of their formation from linear viral DNA by nonhomologous recombination, as we previously described for the duck hepatitis B virus (W. Yang and J. Summers, J. Virol. 69:4029-4036, 1995). However, evidence for two different types of linear precursors was obtained by analysis of the recombination joints in WHV cccDNA. Type 1 linear precursors possessed the structural properties that correspond to those of in situ-primed linear DNA molecules, which constitute between 7 and 20% of all viral DNA replicative intermediates synthesized in the liver. Type 2 linear precursors are hypothetical species of linear DNAs with a terminal duplication of the cohesiveend region, between DR1 and DR2. This type of linear DNA has not been previously described and was not detected among the DNA species present in nucleocapsids. A fraction of cccDNAs formed from both type 1 and type 2 linear DNAs are predicted to be functional for further DNA synthesis, and some evidence for the formation of two or more generations of cccDNA from linear DNA was observed.Hepadnaviruses are small DNA-containing viruses that replicate their DNA genomes through reverse transcription of RNA (17,24). The RNA genome intermediates (pregenomes) are transcribed from a pool of covalently closed circular viral DNA (cccDNA) in the nuclei of infected cells. Reverse transcription takes place in the cytoplasm through a process that uses a combination of template switches (3,14,15,(20)(21)(22)30) to produce relaxed circular double-stranded DNAs, which can be transported to the nucleus to form additional copies of cccDNA (29,32). Progeny cccDNAs retain the precise sequence of the parental cccDNA.We recently reported a second, minor pathway of DNA replication via reverse transcription in the avian hepadnavirus duck hepatitis B virus (DHBV). In this pathway, linear doublestranded DNA produced as a result of a failure to prime second-strand (plus-strand) DNA synthesis at the correct location was efficiently converted to cccDNAs by nonhomologous recombination near the two ends of the linear DNA (33). cccDNA molecules resulting from such recombination thus acquired sequence alterations at the site of the recombination and therefore were not identical to the parental cccDNA. Some cccDNA molecules produced from linear DNA were able to produce pregenomes. However, as a result of the mutation created by nonhomologous recombination, most of the pregenomes gave rise only to linear double-stranded DNAs, which recombined to produce further successive generations of cccDNA. We called this process "illegitimate replication," because each such generation of cccDNA differed in sequence from its parent molecule at the site of nonhomologous recombination. We speculated that the low level of virus expression in cells carrying out illegitimate replication might provide such cells a survival advantage...