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
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
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!
