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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 88415
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I have a book in the form of a digital download. I want to

Customer Question

I have a book in the form of a digital download. I want to sell licenses to others so that they may resell the book. Can I set a minimum selling price via terms of the licenst, or is that considered price fixing?
Submitted: 3 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 3 years ago.
You can set the minimum that you will received for the book on each sale but other than that you can only set a minimum suggested price, but you cannot fix the price of the book for your sellers.

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Customer: replied 3 years ago.
I would accept a 1 time fee for a reseller license. It's a digital product, so there aren't really any costs for the reseller to reproduce it. So it's not like I'm charging them a wholesale price for each copy of the book they sell. Basically, I'm giving them a digital version and they can sell as many copies as they want. So I cannot set a minimum selling price in order to keep some resellers from devaluing the product by selling it dirt cheap or giving it away?
Expert:  Law Educator, Esq. replied 3 years ago.
No, you cannot set the resale price only demand a fee for each copy distributed and in this way you can essentially control the price.
Customer: replied 3 years ago.
Can I charge a monthly licensing fee in addition to the up front fee. Since it's virtually impossible to track how many copies each reseller sells.
Expert:  Law Educator, Esq. replied 3 years ago.
Yes, you can set a monthly licensing fee instead of a per copy fee.
Customer: replied 3 years ago.
Can I place any other restrictions on distribution via the license?

i.e.

  • Cannot be given away for free
  • Cannot be sold on eBay or other auction sites
  • Cannot be posted as web content
  • Cannot be posted as a blog
  • Cannot be broken into individual articles and posted online
  • Cannot be bundled with other products
  • Can only be given away for free as a bonus with another paid product
Expert:  Law Educator, Esq. replied 3 years ago.
Yes, it is your license so you can set all of the terms you choose in the resale licensing contract.
Customer: replied 3 years ago.
But then isn't the term "can't be given away for free" kind of the same thing as establishing a minimum selling price?
Expert:  Law Educator, Esq. replied 3 years ago.
No, cannot be given away free is no price at all set, you are just stating it must be sold or combined with a paid product but you have not set any price.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 88415
Experience: All corporate law, including non-profits and charitable fraternal organizations.
Law Educator, Esq. and 2 other Business Law Specialists are ready to help you
Customer: replied 3 years ago.
Great. Thank you so much for yout time. You've been a BIG HELP!!!
Expert:  Law Educator, Esq. replied 3 years ago.
Thank you.

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