For a new company, MonaVie is really making a name for itself, in the ways that it would like?…perhaps not. They have been named in many lawsuits in just a few short years. Either being sued or MonaVie bringing the lawsuits. Not the kind of publicity I would think a company would want promoted to the public at large.
MonaVie was introduced in January 2005. MonaVie markets nutritional products, specifically through distribution to an end consumer.
Zrii is also is a headliner in the law courts. It too is just a young company. Zrii was officially launched in May 2008 as an international wellness company. Will these two companies survive all the publicity that lawsuits bring.
MonaVie has made some recent claims; suggesting that Zrii has copied their comp plan “word for word”. MonaVie Sues Zrii – Copycat Compensation Plan.
It would not be a first for a company to use another companies compensation plans framework in whole or in part. It has been an occurrence ever since the second Network marketing company came on the scene. Although parts have been borrowed from this comp plan and this comp plan from this company and another, usually a company does not use the comp plan verbatim.
How will the courts view this new claim and of interest, will there be damages awarded? Is this in fact a copyright infringement?
MonaVie and Zrii as well as other networking companies are viewed by some as successful network marketing companies. In my opinion that depends on the research that you conduct. MonaVie is alleging that Zrii “ripped off” its copyrighted compensation plan.
All network marketing companies, also referred to as Multilevel marketing companies, are always on the hunt it seems for new distributors. For a distributor the compensation plan is what attracts them to this industry. It is a very important feature and determines just how you the distributor will be paid. There has to be some enticement, which is the compensation plan.
There is however a behaviour that is driven in this field. It drives the wrong behaviour to be able to successfully create a residual income. If the only reason to be in a MLM company is to recruit, you miss the purpose altogether. Residual income is NOT based upon recruitment. It is based upon actual sales of the product to the end consumer, the guy who just wants to use the product and not become a distributor. Yes, there is compensation for the signing up of a new recruit and the sales that will be generated by this new distributor, but that is a one time bonus, usually referred to as the “Fast Start Bonus”. It is important to recruit, but this should not be the main focus to build your business…find the customers!!
Compensation plans are important parts of the multilevel marketers’ ability to attract distributors because they determine the way monies are paid out.
In the lawsuit, MonaVie said the Zrii pay plan has “nearly identical arrangement, coordination and special layout of the titles, paragraphs and sections, highlighted examples, notes and graphic depictions.”
“They lifted specific provisions of our plan word for word in many cases,” Graden Jackson, attorney for MonaVie, said Friday.
Mary Anne Wood, the attorney for Zrii, said the company denied that it copied MonaVie’s plan.
In addition, MonaVie wants Zrii to pay for damages caused by the alleged copyright violation, with the amount to be determined at trial, as well as attorney and other fees.
MonaVie, of West Jordan, makes drinks based on the açai berry from the Amazon forests of Brazil. The drinks from Zrii, of Draper, are based on the amalaki berry from the foot of the Himalayan mountains in India.
MonaVie was launched in 2005 and says its cumulative sales topped $2.1 billion. Zrii was started in 2007, but has struggled since its top managers quit in February of 2009 in a dispute with owner William F. Farley.
Will these two companies survive the lawsuits? Will they survive the publicity surrounding all the lawsuits? Time will tell. These companies need some sound company management experience that overflows with integrity.
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