5 Key Legal Issues to Consider in your Mobile App Development

If you have an idea that you want to turn into a mobile product, you probably have questions about how to make your application technologically superior, appealing to users, and successful. However, at this point, why is it worthwhile to consider applications' legal aspects?

Most importantly, each stage of app development involves legal issues that should be investigated right now for your own safety. The five most significant legal issues pertaining to the app development process will be discussed in depth in this article.

1. NDA (Non-Disclosure Agreement)

An NDA, or non-disclosure agreement, is a contractual document under which the parties legally pledge to keep certain information confidential. We always advise our clients to sign such contracts BEFORE beginning business negotiations. Why?

It is one of the few ways to safeguard the idea behind your product. Multiple parties can sign NDAs at the same time. In the event that the party with whom you have signed a contract violates its terms, an effective tool for protecting your rights is a confidentiality agreement that is well-structured.

When you sign such an agreement, what should you keep in mind?

A firm definition of "confidential information."

It is a good idea that the parties, before signing a contract, very precisely specify what they consider to be confidential information. It is also worth adding a clause according to which confidential information is all information that we have handed over to the other party in connection with business talks.

Obligations of the other party

The other party’s obligations need to be precisely defined. They should include, among others, maintaining the confidentiality of all obtained confidential information as well as an obligation according to which the other party will disclose information to its staff only if it is necessary and that it will obligate the staff to also maintain the secrecy of this information.

Choice of laws

When signing an NDA with a software house, make sure to determine the jurisdiction governing the contract so that it is favorable to you.

Contractual penalties

Without contractual penalties for breaking the confidentiality obligation, the NDA loses a lot of its value. What penalties can be included? For instance, a specific amount of money for each violation of the confidentiality obligation and, furthermore, a specific sum as compensation for damage to your professional image or lost revenue

Term

As a rule, the duration of NDAs is 2, 3, or 5 years. This choice depends on the value of the information you want to protect. Some information can lose its value after two years, and others after five years.

Obligation to return information

As a safeguard, it’s worth considering a situation where, after business negotiations, we do not wish to continue cooperation with a given party. For these circumstances, in the agreement, we include an obligation to return or destroy confidential information once the business talks are over.

2. Independent Contractor Agreement

Besides, it merits considering the understanding of a compass directing us through the course of participation in its whole span, and especially when there are questions or clashes. As a result, it's a good idea to specify how this collaboration will operate in the agreement. The Agile methodology, for instance, is an industry standard that should not be left out of the agreement. To conclude:

Describe the methodology of cooperation

If you talk about how the cooperation will work at the negotiation stage, you will avoid mismatching mutual expectations. In the agreement, include the tools you will use, the rules of communication, and the procedure for arranging meetings.

Force majeure

In consideration of the unfolding pandemic situation—but also for unexpected economic or political events, too—remember to include the force majeure clause in the agreement. In case you are affected by any adverse effects of any events outside your control, this clause will allow you to mitigate the adverse effects under the agreement. A force majeure clause is usually mutually binding, as are many of the typical provisions of such agreements.

Exit plan

It is beneficial for both parties to draw up an exit plan in case the cooperation ends before the planned duration. It is also worth including information about the handover of the existing code, payment due dates, and contractual penalties (if any) for unauthorized termination of cooperation, if the parties so decide.

Here are some tips for considering legal aspects of your mobile app from the beginning.

Based on our experience, legal issues are frequently overlooked during app development. In the meantime, the best course of action is to incorporate them into the User Journey Map's design at the Product Discovery stage. Why? because there is a possibility that:

• Additional functionalities, such as checkboxes or space to display the license agreement, must be designed.
• Some screens must be redesigned, such as those that determine which user data we collect.

When discovering new app development avenues as a result of legal monitoring over an application from its inception, a lawyer can determine which solutions are legal and how to design them in accordance with the provisions of either national or European law.

The businessperson in charge of the application's contents will be safer as a result. Additionally, it will assist in avoiding additional costs associated with application redesign after completion.

3. Privacy Policy & Data Protection

One of your most important legal obligations is to ensure the security of your clients' personal information. Your app's specific requirements are determined by the country of distribution.

For instance, if you want your app to be accessible to users in Europe, you must comply with the GDPR's legal requirements for applications, and if you also want your app to be downloaded by users in the United States who are under the age of 13, you must comply with the Children's Online Privacy Protection Act.

The requirements are also determined by the purpose of your application. Data security is more important in some industries, like the medical industry (HIPAA). The safest course of action is to delegate this responsibility to the app development team's lawyer because there are so many legal statutes governing the processing of personal data in applications.

From a technical standpoint, data protection is also necessary. As the product owner, you are in charge of problems like data leaks. To this end, it merits picking an organization that tries to safeguard information from the specialized side.

It is really smart to appropriately satisfy the commitments of individual information handling to make it a benefit of your application for cognizant clients who care for their information.

How do I properly fulfill the obligations of personal data processing?

Collect a limited amount of data

Ask users only for data that is absolutely necessary for the application to run properly.

Do not use users’ data for purposes other than for which you collected it

For instance, if you collect the data of a user in order to register his or her account, do not use this data for marketing purposes if you do not have separate consent for that.

Make sure to keep access to data limited

Make sure that data can only be accessed by those who are authorized to do so and that such access is necessary for the proper functioning of the application.

Respect the rights of data subjects.

Give the users a feeling that their data is safe and their rights are respected.

Care for communication

Many of the legal aspects regulating the protection of personal data require the owner of the application to maintain documentation connected with personal data protection. It is worthwhile to begin such documentation while the application is still being designed. This also applies to providing users with concise and clear information about how the application uses their data, in the form of a privacy policy.

4. Terms & Conditions

The country in which you intend to make your application available to users has a significant impact on the terms and conditions that apply to it. For instance, numerous legal acts in European nations require specific text and legal issues to be included in the Terms and Conditions. This includes the European Union-wide regulation on online intermediary services that was recently approved. The most important thing is to remember to specify:

Definition of the controller

It is a good idea to include basic information about your company in the Terms and Conditions.

Conditions of service provision

In the Terms & Conditions, describe what your application does, the conditions of registration (e.g., age limitations), deleting the account, as well as when the agreement is concluded and when it is terminated between you and the user. Also, it is worth mentioning the rules of safe use of the application or technical requirements, along with the suspension and blocking of user accounts.

End-User License Agreement

The application is a computer program that you make available to users under a license. In the Terms & Conditions, specify the conditions of this license agreement.

Processing of complaints and contact with the controller

Include the rules for handling complaints and contact information in the Terms and Conditions. It is good practice to establish a clear procedure for complaints, including multiple ways of contacting you.

Limitation of liability

The Terms & Conditions are also a good place to define the scope of your liability towards users. This document should be written in simple language that is easy to understand for a regular user. There is no point in adding clauses in small print. It will not increase user trust and can be in conflict with some legal acts regulating the legal issues of informing app users about the terms and conditions of service provision.

5. App Stores Requirements

Additionally, your mobile app must adhere to all app publishing requirements outlined in the Apple and Google guidelines. These place an emphasis on the protection of personal data, such as health information and information obtained from minors, as well as intellectual property concerns pertaining to your mobile product.

Conclusion

A mobile application's development is a complicated, multifaceted process. At the outset, it's critical to take into account all aspects, including legal issues. Because of this, you won't have to worry about having to redo your app before it goes live in the event that it doesn't meet the legal requirements for a particular industry or area.

Fortunately, you can avoid this easily by hiring a specialist to handle your application's legal security and resolve any legal issues described in this article.