Ownership of iPhone applications

Question

I am developing my first iPhone application, but I am not sure how to go about handling the ownership end of it. Do most people just own it in their own (personal) name? Do people form an LLC (or some other type of company) and transfer it to that? I'm not looking to make tons of applications, but I do have this one good idea. (I'm not a programmer, and I am in the process of interviewing actual programmers to do the coding.) Any thoughts on what either you do, or what most people do?

Also, does anyone know of any boilerplate-type disclaimers? I'd like to add quite a few to my application, but I'm not exactly sure where to start looking.

(I realize my questions are not stricly about coding, but I hope that they are related enough that they belong on this site).

thanks!

Answer 1

Ask a lawyer. You'll want their expertise to help navigate the specifics of writing up a contract for your developers. (And you will want one).

Answer 2

I do not have an LLC (yet) and have done a number of apps (under review). I know a bunch of groups that have formed LLCs to take the liability off of themselves, but I guess that's only if you have an app that you think might get you sued. If you're just developing a little pinball game, I wouldn't worry about it, but there may be times when it would be worth it.

I didn't quite understand about the disclaimers. Are these disclaimers to your users, to your employees, about iPhone development?

Answer 3

Matt here again.

I should clarify: I am a lawyer and can do most of the contract work (I have some friends who can do the rest).

To Daniel: it matters for several reasons, and although I don't think it really matters why I care, one major reason has to do with liability.

Which leads to the Tahoe's comment: my idea is not a simple game and is targeted at a specific business industry. Thats also where the disclaimers come in: I would like something (well, several somethings) that say that the iPhone application user/purchaser is using the application at their own risk and that while the information is meant to be complete, it may not definitely BE complete.

thanks again!

Answer 4

Do most people just own it in their own (personal) name?

It is done both ways in the App Store. I would personally recommend forming an LLC and distributing your app that way for the following reasons:

• Forming an LLC is relatively cheap (and available in most, if not all states)
• An LLC protects you personally from any legal liability that (in an unlikely event) unfortunately arise
• It looks more professional (depending on the audience of your apps) if the seller is listed as a company rather than "John Doe"

The hurdles with being an LLC:

• The (minimal) added tax hassle with filing forms related to the LLC (YMMV in your state)
• The iPhone Developer application process seems to take longer as Apple requests proof of your business (in the case of an LLC simply your registration document from the state)

Do people form an LLC (or some other type of company) and transfer it to that?

You currently cannot transfer ownership of an app in the App Store from the original owner to another party (whether individual or company). See this blog post from FutureTap detailing their ordeal to try (ultimately unsuccessfully) do exactly this.

If your question was referring to initially signing up in the iPhone Developer Program and later transferring to a company account, that is possible (though it requires more time and hoops). See this FAQ from Apple providing further detail on that use case.

Also, does anyone know of any boilerplate-type disclaimers? I'd like to add quite a few to my application, but I'm not exactly sure where to start looking.

Without knowing the nature of the application and the message you are disclaiming, its very difficult to provide an answer to this question. With that being said, I am not aware of application which provide disclaimers upon first/each use. If you are referring to license agreements, Apple does not restrict you from displaying these in your application. However, note that you must display it in your application -- Apple will not display it at the time of purchase of your app.