How to solve Error:Execution failed for task ':app:transformClassesWithJarMergingForDebug'

Question

My application is working fine in my simulator, however it is failing to build my APK.

This is the error I get:

Error:Execution failed for task ':app:transformClassesWithJarMergingForDebug'.
> com.android.build.api.transform.TransformException: java.util.zip.ZipException: duplicate entry: com/android/vending/billing/IInAppBillingService$Stub$Proxy.

I have everything set up in my Gradle file supposedly correct, so I am not sure why I get this error. Here is my Gradle file:

apply plugin: 'com.android.application'

android {
    compileSdkVersion 25
    buildToolsVersion "25.0.2"
    defaultConfig {
        applicationId "flarehubpe.xflare.flarehub"
        minSdkVersion 15
        targetSdkVersion 25
        versionCode 1
        versionName "1.0"
        testInstrumentationRunner "android.support.test.runner.AndroidJUnitRunner"
        multiDexEnabled true
    }
    buildTypes {
        release {
            minifyEnabled false
            proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.pro'
        }
    }
}

dependencies {
    compile 'com.anjlab.android.iab.v3:library:1.0.+'
    compile fileTree(dir: 'libs', include: ['*.jar'])
    androidTestCompile('com.android.support.test.espresso:espresso-core:2.2.2', {
        exclude group: 'com.android.support', module: 'support-annotations'
    })
    compile 'com.android.support:appcompat-v7:25.2.0'
    testCompile 'junit:junit:4.12'
}

It seems that my one library is causing this- when I remove the line compile 'com.anjlab.android.iab.v3:library:1.0.+' the app builds fine. How can I fix the problem but not have to remove the library?