This could be clearer:

"3.3 You may also choose to distribute Products for free. If the
Product is free, you will not be charged a Transaction Fee. You may
not collect future charges from users for copies of the Products that
those users were initially allowed to download for free. This is not
intended to prevent distribution of free trial versions of the Product
with an "upsell" option to obtain the full version of the Product:
Such free trials for Products are encouraged. However, if you want to
collect fees after the free trial expires, you must collect all fees
for the full version of the Product through the Payment Processor on
the Market. In this Agreement, "free" means there are no charges or
fees of any kind for use of the Product. All fees received by
Developers for Products distributed via the Market must be processed
by the Market's Payment Processor."

Perhaps it should be re-written to state that if a product is
distributed for free at any time, it will stay free and can't be
altered.

Too bad for you. I hope you didn't have many users. Changing the app
package is pretty much your only choice now.

-John Coryat

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