Designing a successful mobile application has become one of the fastest ways for a technology start-up to make it big. While apps can generate significant revenue for businesses, they also come with unique legal concerns. Here are some of the top legal cerns that NJ Mobile app developers should know about it.
Last year, global mobile app revenues grew to a record $45 billion. By 2020, revenue across all platforms is predicted to exceed $101 billion. Given the success of the industry, it is not surprising that there has also been a significant uptick in mobile application development companies. We have assisted several of our client companies that were traditional companies who have now developed ways to grow their businesses and engage new consumers with apps that complement existing products and services.
While the target audience and app content can dictate a number of specific compliance concerns, there are several issues that all app developers should address, including:
Business structure: For start-ups, it is essential to have a partnership agreement or other written agreement in place that sets forth the ownership rights, responsibilities, and revenue share of the shareholders or partners. To limit liability, and, in some instances, to simplify fund raising to finance the expansion into this new business, existing businesses may form a separate subsidiary as a new entity that is dedicated to app development and sales. Having an existing traditional business demonstrates to potential investors that management has skills and experience needed to develop and grow a business.
Vendor agreements: In many start-ups, the business owners and the app programmers are one and the same. However, if employees or outside developers are used, it is important to execute an assignment or a vendor agreement. Among other key terms, the contract should specify that all intellectual property and use rights will vest in the company paying the employee or outside developer. In addition, the contract should also include non-disclosure provisions that protect the confidentiality of the app being developed.
Intellectual property rights: App developers must also secure the required licenses for any trademarked or copyrighted content used in the app or risk facing an infringement lawsuit. Companies should also be mindful that the use of open source software still requires specific licensing procedures
End User License Agreement (EULA): Consumers who purchase mobile apps are technically receiving a license. The terms of use are typically set forth in an End User Licensing Agreement or EULA. While Apple provides a standard agreement for apps sold on the iOS platform, developers should consider drafting a custom EULA that addresses risks or needs specific to the particular app.
Data collection and privacy: Regulators are increasingly scrutinizing the data practices of mobile app developers. Therefore, it is important to have a detailed data privacy policy that specifies what information is collected; how is it stored; how the company uses the data; and whether it is shared with third parties
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
