Monetising apps
Produced in partnership with Hunton Andrews Kurth

The following TMT practice note produced in partnership with Hunton Andrews Kurth provides comprehensive and up to date legal information covering:

  • Monetising apps
  • Terminology
  • Definitions
  • Monetisation of apps
  • App store arrangements
  • Monetisation options and mechanisms
  • Contractual issues relating to the monetisation of apps
  • App store terms and conditions
  • The developer’s own terms and conditions
  • Terms governing monetisation options
  • More...

Monetising apps

The ever-increasing popularity of smartphones, tablets and other personal computing devices has created substantial demand among users for applications (apps) that can be used on those devices. This demand has created opportunities for companies and individuals to develop a wide array of apps to meet users’ needs. However, monetising apps is not always straightforward.

This Practice Note:

  1. examines the relevant background and terminology of apps

  2. explains the various approaches that developers have taken to monetisation of apps

  3. highlights contractual issues that are likely to arise in this context, and

  4. provides a summary of other relevant legal issues

There are numerous ways to monetise apps and, for the most part, there is no single approach for addressing the legal challenges that may arise. Consequently, this Practice Note focuses on the most commonly adopted approaches in the market. Developers should be aware that the monetisation of apps is an area of rapid development and change, and care is needed to select the most appropriate approach.

Terminology

Definitions

The following terms are of particular importance to this topic:

  1. apps—an abbreviation of application referring to a computer program. There is no uniform definition of what an app is or does, and the distinction between apps and traditional software can be unclear. However, there are some features that apps typically have in common:

    1. apps are generally designed for mobile devices (initially smartphones and

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