Top 5 Legal Troubles Often Faced by App Based Businesses

Google Play and Apple’s store have millions of app developed by millions of businesses and developers from different parts of the world. Creating a mobile app can certainly be a rewarding business decision; unlike other business ideas, this will need lower investment to begin with. And probably this is why, from startups to large enterprises, almost every size of business is today thinking of building a mobile off of own while some of them already have it.

app based business legal

If you are planning to begin with mobile app development in this New Year 2016, then don’t be naïve to overlook some common legal issues this post discusses about. Being aware of them in advance will save you fortune and a lot more. Let’s continue reading then!

No legal proof for proving app ownership

There can be three scenarios: you have developed app on own, it has been developed by your employee or you have outsourced app developed to a third party. In first case, the app ownership isn’t any concern. But if your employee has developed the app or in case you have outsourced app development to an offshore company, it becomes vital to have a legal proof showing who owns the copyright of the app.

Moving ahead without forming a business entity

Forming an LLC is important to restrict your personal liability in your business endeavor. In business, you may sometime witness some unforeseen legal hurdles that can put your personal assets like home and car at risk if LLC or corporation isn’t created. Even if you are an app based startup, it is strongly advised to create a limited liability entity and make your venture financially full-proof.

Confidentiality Compromised

Confidentiality problems are a common sight in the business world. In this tech industry, you need to be extra careful while discussing your app ideas and features (can be terms as ‘intellectual property’) with others, whether it is designers, developers or any other third party person. And thus, it is strongly recommended to get NDA document signed from everyone involved in the app development project. This way you can prevent leaking of sensitive project information.

Underestimated importance of ‘Terms of Use’ and ‘Privacy’ Content in App

When compared to above points, app entrepreneurs are least aware of the legal complications associated with terms of use and privacy policy pages. However, it is worth noting that these two holds great importance and if left unaddressed can lead to worst consequences for your app business.

Liability of user added content left unhandled

In case your app allow users to add content, make sure you address the liability concerns associated with this user generated content. Any defamatory, illegal or infringing content contributed by users should not pose risk to your app business. Solutions are you can review content before publishing it, review content once it is published or leave it unmoderated. Check if your app allows removing any unlawful content immediately and easily.

Take proactive steps to avoid these common legal issues faced by app entrepreneurs!

Author Bio:

Noel is a website consultant and internet marketing professional working with small businesses. Offering a variety of business services like mobile app development, SEO, website design & development in india. He is committed to helping businesses succeed in an increasingly technological environment.