When the litter is registered , the breeder owns the pup and already has the pups paper in their hands. When the pup is sold and signed over to the new owner with the AKC papers and Health Guarantee , there's a place to check off on the AKC registration for breeding rights or no breeding rights. I have that in my contract so the buyer understands the stipulation of their right and mine. This is a copy that I have them sign and keep on my AKC records.
There's also a Vet health certificate I would provide and a Guarantee for one year that the puppy will not develop heart, hip or knee, problems , providing the new owner take the pup to their vet within the first three days of picking up the pup. It's all good. If you don't want to breed the dog it shouldn't be a problem. If you want to breed the dog you should talk it over with the breeder. I hope this is explained clear enough. It's to protect the dog from becoming a puppy mill dog.