MonaVie Sues Zrii over Compensation Plan

by louabbott on June 21, 2010

MonaVie claims Zrii copied their comp plan “word for word” in many cases.

Of course, companies have been copying features and whole compensation plans ever since the second multilevel marketing company came into existence. (There are now thousands of MLM companies.)  But they usually don’t do it “word for word.”

It will be interesting to see if the courts find that this was an actual copyright violation and if they award damages.

MonaVie, the highly successful purveyor of nutritional fruit drinks, is suing Zrii, alleging the competitor ripped off its copyrighted plan for compensating independent distributors.

Both companies are multilevel marketers. They compete for distributors who are compensated in part on sales to new distributors they recruit into the company. Compensation plans are important parts of 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.

See the full article at the Salt Lake Tribune.

Also see “Related Posts” below on both MonaVie and Zrii.

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{ 1 comment… read it below or add one }

harshavardhan August 15, 2011 at 3:43 pm Thumb up 0 Thumb down 0

i am from monavie only but dont speak about amalakiberry like foot of himalayan mountains of india bro, amal is very big in ayurveda


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