Developers, designers, analysts, marketers, and lawyers participate in preparing an application for release on the App Store or Google Play Store. The Icon.Partners' legal team has designed the Top-5 tips to avoid mistakes and successfully present a new product to the world.
Tip No. 1. Register trademarks in advance
A trademark is a unique mark of difference from competitors. It should be considered when planning the application and working on the name.
Marketers spend time and money choosing a name, and designers design a logo. You should carry out all these actions in parallel with inspecting the state registers of trademarks. It's called Trademark Search.
If the name is already registered as a trademark, we do not recommend using it.
Risks:
a lawsuit from the trademark owner, a fine
removal from the App Store or Google Play Store. Lost benefit
loss of money invested in the name, design, promotion of the application, and PR. Direct damages
reputational damage. Loss of user and investor loyalty
risks of launching an application without a trademark, even if a Trademark;Search has been conducted and no one takes the name
trolls will register a trademark and block the app until they receive a substantial reward
Always do a Trademark Search when developing a name. Next, choose a free title and register the trademark in the countries where the application will operate.
Developers design trademark packages, including names, logos, colors, and background music. It takes between 8 and 24 months, but trademark rights arise when the application is filed.
Example: Instagram received the rights to TM "Gram" in the EU. Insta banned several apps from using the "Gram" part in their name. For example, Travelgram, Joygram, and Showgram.
Tip No. 2. Develop a non-standard Privacy Policy and Terms of Service
Google Play Store and App Store only check for Privacy Policy and Terms of Service. Platforms do not care what legal content you have.
Developers' mistake is to use templates, especially those copied from others. Developers don't like it when their applications, games, and ideas are stolen, but at the same time, they allow themselves to steal other people's legal texts. It’s bad and makes no sense from a legal point of view.
The document should protect you. From users, competitors, fines, platforms, and government regulators. Protect content, and personal data, limit liability, etc.
In the Policy (Privacy Policy), it is necessary to prescribe:
information about the company that processes the personal data of users
list of processed data
processing purposes
legal basis for processing
term and place of data storage
transfer to third parties: information about such persons, what is shared and for what purpose
rights of users whose data is processed
processing of cookies
If the user is a citizen of the EU, personal data is processed based on the special GDPR law (a general regulation that describes the principles of working with data in the EU).
Example: The TikTok app was fined €750,000 for not having a Policy in the Dutch language. TikTok's content is primarily aimed at children who do not know enough English to understand the Policy. The absence of the Policy in Dutch violated the rights of child users.
In the Terms of Service, you need to write the following:
terms of use of the application
payment procedure for using the application and price
intellectual property rights
the moment of acceptance and expiration of the agreement
dispute resolution procedure
liability of parties for violation of provisions
Sometimes a skillfully drafted Terms of Service paired with a well-chosen jurisdiction for the operating company allows you to avoid or reduce taxes legally, for example, VAT.
Tip No. 3: Consider platform fees when monetizing
Platforms give developers the right to choose how to monetize the app - make it paid or add in-app purchases. But remember that the platforms will charge a fee on each transaction and track the circumvention of this rule. Previously, the standard App Store commission was 30% of each purchase.
Example: In 2020, Epic Games sued Apple. The reason is the removal of the Fortnite game from the App Store because Epic Games added an alternative payment method to the game. The court granted Epic Games' demands, allowing developers to avoid the 30% App Store fee by using alternative payment methods. Apple appealed, saying the changes would upset the balance between developers and users. On January 5, 2021, the Court of Appeal suspended the execution of the decision in this case until next year.
Even so, this case became an impetus for changes in the market. The App Store had to reduce the commission to 15% for small businesses if the sales turnover was at most USD 1 million per year. 99% of US developers meet these criteria. Then the Google Play Store matched its commission with the App Store. The reduced fee applies to in-app purchases, subscriptions, and internal payments.
However, some apps can still accept payment by bypassing the App Store or Google Play Store. Take advantage of this if legally possible.
Tip No. 4: Consider platform fees when monetizing
Since 2017, the Google Play Store has been blocking apps that don't follow the platform's rules.
Don't add other ways to download or update the app.
The Google Play Store does not allow apps published on Google Play to go to third-party sites for download or updates.
Do not post objectionable content.
Some developers add 18+ pieces of content to apps to increase engagement and sales.
Example: Since 2014, Google Play has banned images, icons, and titles exploiting erotic themes. The OnlyFans app has been denied publication on platforms twice due to explicit content.
Use keywords wisely.
In 30% of cases, the publication is refused due to violating the rules for using keywords. Developers are trying to increase the reach of users and make a mix of keywords out of app names. As a result, applications are instantly blocked by the system. You should not indicate other people's trademarks or celebrity names, even if they are not represented on the platform.
Do not interfere with other applications.
You cannot specify the names of different applications in yours. Platforms see this as exploiting the audience of other developers.
In some cases, this is possible, but there are details.
Example: The client developed an application for managing TikTok accounts. Actively used the word "TikTok" in its title and description. The AppStore support service noticed this and sent a warning to the customer demanding that TikTok be removed from the application name. According to the platform, the client's actions are parasitism on TikTok and its audience. At the same time, Apple was allowed to leave it in the description.
The platforms' rules constantly change, introducing new requirements for application developers.
To publish on the platform for the first time, it is worth carefully checking the applications for compliance with the platforms' rules.
Tip No. 5: Consider the business form when registering
App Store
The Apple Store allows you to register as an individual, an individual entrepreneur, or a company. The Apple Developer Program requires developer companies to have a D-U-N-S number. This is a digital signature for unique company identification provided by Dun & Bradstreet. The company name on the Apple and D&B sites must match. The number is issued on the DNB website. The delivery period is approximately one week. Also, you need to create a developer account and pay a yearly subscription of 99 USD.
When launching, consider the goals and prospects of the development of the application. Registration of an individual developer account is immediate. A legal entity should wait two to four weeks.
A corporate account is a must unless you want to be responsible as an individual for all your personal property to users or platforms.
There is also a difference in the number of developers who have access to the account. Remember the difference in taxation of income from the application.
Google Play Store
Google Play Store, unlike Apple, does not require a DUNS number. Individuals will be asked for identity documents.
If you want to monetize your app, you'll need to create a Google Payments Merchant Center merchant account when you sign up. It can be attached to a developer account. It is impossible to make a free application pay. You must republish the app with the new package name and include the price.
Later, you can switch your account from an individual to a company if you are a founder or co-founder. You need to contact support to start the process.
Conclusion
Preparation for the application publication is carried out by a team, together with lawyers. You should approach this process carefully.
Decisions based on our advice will help reduce legal risks and avoid fines and application bans.