Master Resell Rights (MRR) has been a hot topic lately, with several providers and their products getting a lot of chatter on social media. A number of people have asked my thoughts on this issue, often referring to the notion of selling products with MRR rather than PLR, because there seems to be a wide-spread belief that MRR allows you to also control the price at which it is sold, thereby protecting the value of your product.
PLR content offers a flexible foundation for creating digital products. It allows purchasers to modify, brand, and resell the content as their own. However, the practice of converting PLR into a course, for example, and then imposing strict resale restrictions under an MRR license is a complex issue with legal implications.
Repurposing and Reselling PLR as MRR
While there is no inherent illegality in repurposing PLR content into a course and reselling it, the specific terms of the original PLR license are crucial. Some PLR providers offer unrestricted rights, while others may impose limitations.
Imposing MRR restrictions on a repurposed PLR product is a common practice to control the resale value and protect the original creator's brand. However, it is essential to ensure that these restrictions do not infringe on the rights of the original PLR content creator.
Price Fixing and the FTC
Price fixing is a serious antitrust violation. It involves agreeing with competitors on the price of a product or service. Imposing a fixed resale price on a product you've created from PLR content could potentially be seen as price fixing.
The Federal Trade Commission (FTC) is the primary agency responsible for enforcing antitrust laws in the United States. They closely monitor business practices to protect consumers and ensure fair competition.
Key considerations:
• Original PLR license terms: Carefully review the terms of the PLR license to understand the permitted uses of the content.
• Resale restrictions: While imposing some restrictions might be permissible, excessive control over resale prices could raise antitrust concerns.
• FTC regulations: Familiarize yourself with antitrust laws and regulations to avoid legal issues.
• Consumer protection: Ensure that your resale practices are fair and transparent to consumers.
It is advisable to consult with an attorney specializing in intellectual property and antitrust law to assess the specific legal implications of your business model.
Ultimately, building a successful business involves ethical practices and respecting the rights of others. While repurposing PLR content can be a profitable strategy, it is essential to operate within legal boundaries and maintain a strong reputation.
One online legal resource is Valerie Del Grosso at Del Grosso Law Ltd.. Tell her Stephen B. Henry sent you.
Got questions about, or need more help on, the potential legal consequences of price fixing or related issues? Please feel free to reach out to Stephen B. Henry.
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