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Legal Issues to Consider

to Protect Your App in
2024
HAROLD B. LLAGONO, MIT
We are living in the ‘app age’ where minor mobile app
development legal issues can result in dire consequences such
as legal penalties or removal from the app store. Thus,
addressing these issues is essential to ensure the security and
success of your business.

With over 6.3 billion smartphone users worldwide and over

seven million apps across Android and iOS platforms, it is no
surprise that the mobile app industry is thriving by leaps and
bounds.
According to Grand View Research, the global mobile app
market was valued at $206.85 billion in 2022 and is poised to
grow at a CAGR of 13.8% from 2023 to 2030. From gaming,
music, and entertainment to healthcare, finance, and
eCommerce, there is an app for everything.
However, while app development is progressively turning into a lucrative
investment for businesses across industries, taking care of the legal aspects
has become unprecedentedly critical to protect applications from any sort of
complications, failure, or penalties.
To help businesses seamlessly navigate through building legal
and regulatory-compliant applications, here we have listed 11
major legal aspects to look at during mobile app development
in 2024.
11 Legal Aspects to Consider during Mobile App Development
Legal considerations in mobile app development are critical to ensure regulatory
compliance with laws protecting developers, users, and businesses alike. Here are
some crucial mobile app legal requirements that you must consider to ensure the
protection and success of your app in 2024.
1. Confidentiality Agreements
Sign a confidentiality agreement to protect your app idea from
getting pirated. In most app development environments,
confidentiality issues may arise when outsourcing third parties.

A non-disclosure agreement (NDA) is considered the most

familiar way to protect your product idea. Generally, NDAs
restrict information dissemination about a particular project or
product. They also limit the information to the people who
have signed the document. For the uninitiated, NDAs can be
signed with multiple parties.
1. Confidentiality Agreements cont..
NDAs are especially useful in the following situations:

• NDAs protect sensitive information disclosed during the app

development phase. (For instance, passwords, source
code, or business plans).
• They protect your business from possible risks when
outsourcing people who have also worked with competitors.
• Keep your app a secret while under development.
• Maintain confidentiality of trade secrets.
2. Intellectual Property Rights
Intellectual property (IP) protection relates to all work that is
original and created during the mobile app development
process. During the app development process, you and your
team will create original content, app ideas, UI/UX designs,
logos, app names, source code, etc. All these original
elements are considered IP and belong to you. Your company
needs to register them as trademarks, copyrights, or patents
to protect the app idea.
ex: https://www.ipophil.gov.ph/
2. Intellectual Property Rights cont..
• Copyright – It protects your app’s source code, artistic or
written work, and design. Your app will be safe from
unauthorized copying.
• Patents – Patent protection covers certain methods,
processes, and products used in app development. They
are generally new and non-obvious.
• Trademarks – Trademark identifies the source goods or
services’ origin. It often includes protection for your app’s
logo, name, and slogan. Most of the app development
companies register at least their app’s name as a trademark
3. Jurisdiction
If you plan to launch a product overseas, make sure that it
complies with local laws. Before marketing and distributing your
product in international markets, hire a legal tech service expert to
help you with all legal work. This would allow you to understand
the laws of other countries for an efficient launch the product.

Engaging with local professionals and seeking their insights can

also provide valuable guidance in navigating regulatory
landscapes and establishing a solid foundation for your
international venture.
4. Business Structure
You must know how you want to operate your business. You
can act as a sole trader, become a partner in a collaboration,
or form a limited liability company. An LLC is considered the
right operational structure as it limits your liability,
safeguarding personal assets in the face of unforeseen
challenges, making it an optimal choice for entrepreneurs
seeking a balance between flexibility and protection.
5. App Store Agreements
Once the app is ready to be launched, the next step is to submit
it to the Play Store or App Store. Your app must comply with all
Google and Apple app publishing guidelines. You must also
check government regulations for apps before bringing them to
the market. The terms and policies emphasize personal data
protection and address IP issues concerning your app. These
platforms also reserve the right to modify their legal terms or add
new clauses when necessary. Your app must comply with the
evolving changes, or it might face serious penalties.
6. Terms and Conditions
“Terms of Use” is a legal agreement that mobile app developers add to
the app. The agreement is valid automatically as soon as the user
downloads the app. It outlines crucial information about the app,
stipulates how users are expected to use it, defines what actions qualify
as improper or unlawful us and specifies the consequences of such
misuse.

A Terms of Use agreement is crucial because it reduces the risks of legal

and ethical issues for mobile apps if a user misuses your product. By
clearly defining the terms and conditions of app usage, this agreement
acts as a protective measure for profitable apps and contributes to a
more secure user experience.
 7. Privacy Policy
Privacy rights – specifically, the privacy rights of end-users of the app should not be
overlooked. The prime way to address app users’ privacy rights is to comply with data
protection laws such as General Data Protection Regulation (GDPR), Health Insurance
Portability and Accountability Act (HIPAA), and California Consumer Protection Act (CCPA)
(privacy framework), ensuring that user data is handled with transparency and compliance.
The privacy policy must explain to the users how the app will collect, store, and use their data.
Such policies must also clarify the rights of end-users regarding their data. They must also
know how to exercise their rights for data protection.

Here are a few steps to meet Privacy Policy requirements:

• Privacy Policy must be in place from the beginning of the mobile app development
process.
• It must be clear and transparent to prevent app development legal issues.
• It should be in force and available for users as soon as they download the app.
8. End-User License Agreement (EULA)
The major app stores require apps on their platform to have an end-user license
agreement (EULA). It is a contract between the app owner and users that specifies
the terms under which the end-user will use the app a identifies all permissible and
non-permissible uses. The EULA will also ensure that the user isn’t misusing the app
in a harmful way.

Thus, your EULA must be enforceable, meaning the app user must agree to the
EULA. The most effective way to get user consent is the use of “clickwrap
agreements’’. Developers disclose them before the app is downloaded. The EULA is
presented to the user, requiring them to confirm that they have read and agreed to its
terms by clicking the “I Accept” button.
9. User Consent and Permissions
Explicit user consent for data collection and device access is
non-negotiable. Understanding the nuances of obtaining
consent, especially for sensitive content, is essential to building
trust and avoiding legal complications.

Prioritizing transparency and user control not only complies with

data privacy regulations but also fosters an ethical relationship
between service providers and users in the digital landscape.
10. Security Measures
Implementing robust security measures such as two factor
authentication, biometric access, data encryption techniques,
etc., are essential to protect user data from potential data
breaches and mitigate legal challenges. Failure to implement
adequate security measures may lead to legal consequences
and poor user experience
11. Compliances
Major industries where addressing mobile app development legal issues and
compliances are of utmost importance:

• Finance: GDPR, CCPA, and PCI DSS compliance are vital for financial
apps to protect sensitive user da and ensure secure transactions.
• Healthcare: HIPAA regulations are critical for healthcare apps to safeguard
patients’ medical information and prevent unauthorized access or breaches.
• eCommerce: Compliance with consumer protection laws like the FTC Act
and GDPR is essential for eCommerce apps to ensure fair business
practices and handle personal data securely.
• Transportation: Adherence to regulations such as GDPR and CCPA is
important for transportation apps to protect user data and ensure privacy.
11. Compliances cont…
Stay compliant with relevant industry standards and regulations,
as failure to comply with essential standards can result in legal
penalties and reputational damage. With the increasing
integration of AI technologies in apps, adherence to AI-related
regulations has also become mandatory to ensure ethical use,
data privacy, and fairness in decision-making processes.
11. Compliances cont…
Ensuring legal compliance and addressing ethical
considerations are crucial for companies looking to develop a
profitable application. Adhering to the above-mentioned legal
requirements is essential to minimize legal risks and safeguard
intellectual property rights.
 In conclusion, mobile app developers have a responsibility to
ensure that their products are ethically sound and do not harm
users or society.
Thank
You!