Auctionit allows the resale of public domain content. But there are a few stipulations:

You must make it clear in your listing that the item is public domain (if it is burned to a CD or DVD make sure you include that, it will minimise the risk of people thinking its a counterfeit and make everyone’s life allot easier).

E.g. This Movie is public domain, we have lovingly remastered it onto a Blue backed DVD-R for your enjoyment. For more information about public domain please visit: //en.wikipedia.org/wiki/Public_domain

The item must Actually be public domain make sure you get your public domain content from trustworthy sources. If the item is creative commons make sure you have the original creators permission to publish and resell (as many creative commons licences make them free to share not free to sell, this will help us clear up any complaints that may come up if you have written permission to use the content).

As a sales tip, try to make any public domain content you make stand out from the crowd, digitally enhance the content, crop videos into 16:9 for full screen viewing, create nice menus on DVDs and compelling cover and disc artwork. This will increase the odds of you making successful sales. We are adding lists of wholesalers, digital item providers, drop-shipping companies and public domain content providers to the knowledge-base to try and help you source goods for your businesses affordably and legally.