In Short
- Identify your target audience and ensure your app meets their needs.
- Prioritise user experience and security features during development.
- Understand legal obligations, including intellectual property and privacy laws.
Tips for Businesses
When developing an app, focus on understanding your users and their needs. Ensure your app complies with legal requirements, particularly around intellectual property and data privacy. Prioritising user experience and security will help build trust and increase your app's success in the market.
The use of mobile phone apps is rapidly increasing. You look down at the neatly ordered icons on your smartphone, and then you have an idea. An app where you can swipe left and right on real estate, and match with sellers. You discuss the idea with colleagues, your hairdresser, and your barista. You brainstorm names over brunch with friends and you contact developers. But before you plan an elaborate social media marketing strategy to launch your app, creatives and developers need to know the legal framework. This article will explore seven legal considerations involved in developing an app.
Non-Disclosure Agreements (NDA)
Before you develop your app, you may need investors, business partners, or other team members to assist you and provide you with the right resources.
When discussing your idea with potential investors and developers, you should consider asking them to sign a Non-Disclosure Agreement (also called a confidentiality agreement). An NDA typically includes a promise not to divulge certain information. It generally facilitates communications with a third party before formally entering into a contract. However, the foundation of business partnerships is mutual trust, and in honing your pitch, practice talking about your idea with others without disclosing its secret sauce.
An NDA can include a promise not to use your ideas without permission when developing an app. Knowing your app's concept is protected, you should engage with your team and investors. It is advisable to first consult with a lawyer to determine when an NDA is appropriate.
Protecting Your Intellectual Property: Copyright
Before you launch your app to the public, consider securing formal intellectual property protection. Writing your idea or drafting sketches can demonstrate your ownership of the app's creative elements. Documenting your idea on paper or electronically provides evidence of your authorship when pitching to investors and developers. However, remember that copyright protection is not automatically granted when creating the work. Additional requirements or procedures may be necessary to secure copyright protection effectively.
You or your company may need to properly assign contributions from developers, source code, and other elements during the development process. To be certain about your intellectual property ownership, you should ensure you have the proper contracts to assign intellectual property rights to you or your company.
What Does Copyright Not Protect?
Copyright protects the specific way you express an idea. It will not prevent developers from independently developing their own app or software that does the same thing. Copyright then does not protect your app's function, and it does not protect the name or title of your app.
How Do You Get Copyright Protection?
In Australia, copyright protection is both free and automatic. You protect your idea as soon as you save it to a file, write it down, or put it into a tangible form. While including a copyright notice (such as © LegalVision 2024) is not mandatory for protection, adding this notice to your apps is advisable. It informs others that the app is copyrighted and provides a contact point for copyright-related queries.
Third-Party Material Use in Your App
Mobile apps often include third-party material that can be protected by copyright, they include:
- images;
- photographs;
- music; and
- video clips
Therefore, you must obtain permission from the copyright owner before using the material in your app.
Protecting Your Intellectual Property: Trade Mark
Choosing and removing your long list of app names can be time-consuming and difficult. You said tearful farewells to "Matchbox" and "PropertyPal" before deciding upon "EstateMate." It is sensible then to trade mark your app's name and logo by registering with IP Australia. A trade mark identifies a unique product or service and distinguishes your goods and services from someone else.
Preparing Your Trade Mark Application
You must first describe the goods and services for which you intend to use your trade mark. ATMOSS is an excellent tool that allows you to search pending or registered trade marks in Australia and confirm whether there are any identical trade marks for your app's name. Mobile apps will likely require two classes, Class 9 and Class 42, for software design and development.
Typically, it takes 3 to 4 months to examine trade marks from the date you file your application. If the examiner accepts your trade mark, you need to pay a registration fee. Your trade mark may be removed if it is not used in trade.
App Development Agreement
A development agreement sets out each party's rights and obligations. Typically, it will also outline what you need the developer to do, including timelines and payment terms.
It is most important to outline who owns the app and what the ownership includes. When you engage a developer in coding your app idea, the default rule is that the creator of a work is the first owner of the copyright. Generally, this is the developer who wrote the code. It is then important to clearly state who will own the app's copyright and what uses the other party may make.
Ideally, you should transfer ownership upon the creation of the intellectual property. However, developers often insist on transferring ownership only after you have made full payment. Your developer might also clarify that, while you own the app, they will retain ownership of certain methods or templates they use.
Other points addressed in a development agreement include:
- the procedure if a client needs to make alterations or requires additional services;
For example, realising the concept behind your app may take multiple iterations. You may not be satisfied with your app's prototype and will require the developer to alter or change the app altogether. It is then important to ensure your development app provides you with rounds of changes within the price. Your developer may inform you that they provide limited rounds of review or that additional costs may apply depending on the nature of the changes requested.
- how to test the final product to ensure the app meets the development specifications; and
For example, developers may include clear guides around 'Acceptance Testing', referring to the period of time your developer gives you to test the final product. It is important to know any timeframe or conditions involved in Acceptance Testing. It is common for a developer working on many projects to stipulate a clear deadline or method of communication (including silence!) for feedback or acceptance.
- confidentiality clauses direct both parties to use the confidential information for its disclosed purpose.
Having a development agreement in writing to which parties may refer can help avoid future disputes.
App Stores and Agreements
Each app store sets its own terms and conditions. You must agree to these before selling an app through that platform. You should ensure that you understand the licences for each platform. Typically, app store licences cover:
- the number of devices an app can be installed on;
- the number of copies of your app that can be installed simultaneously; and
- revenue sharing.
Therefore, pay close attention to clauses that determine the rights of purchasers and the app store. It is sensible to have a lawyer review these agreements before you sign.
App Terms of Use
Your app's terms of use will protect you and your business. It is the agreement between yourself and your user. These differ from the app store's Terms and Conditions, which exist to indemnify them from any of your unhappy customers or experience problems with your app.
Your app's terms of use should generally include:
- the services you will provide, including whether you offer any support services or have a support channel for your users to reach out to;
- the purpose and conditions attached to users using the service;
- intellectual property protection (such as ensuring your users do not try to reverse engineer your app);
- warranty disclaimers limit the risk of your app malfunctioning or being misused – for instance, you might need to explain that users cannot use your services as a substitute for professional services or advice; and
- indemnity clauses as well as limitation of liability.
You may also incorporate a privacy policy in your app's terms of use. This outlines and clarifies what you do with any information you collect and how it is stored. Including a privacy policy in your terms of use gives users confidence that the information they provide is secure.
Key Takeaways
Developing a mobile app can be an exciting and profitable venture. You will most likely spend time conducting market research, perfecting your sketches and crafting your pitch for investors. However, you must spend equal time and energy familiarising yourself with the legal framework and documents before you begin.
Frequently Asked Questions
How can I protect my app idea before sharing it with others?
Ask potential investors and developers to sign a Non-Disclosure Agreement (NDA) to keep your app idea confidential. Consult a lawyer to know when an NDA is necessary.
How do I secure my app's intellectual property?
Document your app idea and register it for copyright protection. Also, trademark your app's name and logo with IP Australia to protect your brand. Ensure you have the right contracts for intellectual property rights.
What should I include in my app's terms of use?
Your app's terms of use should cover the services provided, intellectual property protection, warranty disclaimers, and indemnity clauses. It is also wise to include a privacy policy detailing how user information is collected and stored.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.