Digital entrepreneurs as a group are short on time. Keeping up with every facet of doing business in the online marketplace is definitely a full-time job, despite what many promoters of “get-rich-quick” schemes would have you believe.

One effective method many internet marketers use to produce products or content for their websites is to incorporate the use of private label rights (PLR), resale rights (RR) and master resale rights (MRR) products into their businesses.

The Problem

Use of RR, MRR and PLR products is an effective and time-saving strategy if done correctly. In effect, the marketer is outsourcing the preparation of the product or website content.

The most common problem that arises for internet marketers who use RR, MRR and/or PLR products is not understanding what they may – and may not – do with those products.

Many marketers mistakenly believe that when they purchase these products they are then free to do whatever they want with them.

Basic Concepts

To begin, it is important to understand that the creator of the content or product owns all the rights to that product in the beginning. The creator may license some or all of the rights to that product to others if he or she chooses to do so. A license is nothing more than the granting of certain “permissions” with respect to the product.

There are four broad categories of rights which the creator of the product may license to others:

    1. Private use rights
    2. Resale rights (RR)
    3. Master resale rights (MRR)
    4. Private label rights (PLR)

Definitions

Private Use Rights: if the content owner transfers only private use rights, the purchaser may only use the product for his or her own personal use. The purchaser does not have the right to alter the product or to make further transfers of it by sale or by free distribution of any kind.

Resale Rights: If the owner transfers resale rights to the purchaser, then the purchaser is licensed to resell the product, but not to alter it, add their own name to it, or transfer anything other than private use rights to other people.

Master Resale Rights: If the owner transfers MRR, the purchaser acquires a bundle of rights defined by the license, which typically includes the same rights as with RR products, plus the right to transfer those rights to others. So, if you own MRR you are licensed to transfer resale rights to others.

Private Label Rights: PLR is the broadest bundle of rights transferred by a product owner. With PLR, the purchaser often receives the same rights as with MRR plus the rights to add the purchaser’s name as the product creator and to alter the content of the product.

A Caution

It is important to remember with all of these arrangements that the original owner is not technically “selling” the product. A “license” is being granted to use the product in whatever way the license agreement delineates.

That being the case, one must always read the license agreement carefully to determine the permissible uses of the product under the license. The foregoing definitions are general guidelines, but the license agreement may alter them and will be the ultimate legal authority if a dispute arises.

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