HHR New Media, Entertainment and Technology Group

Over the last year, social networking sites, most notably those with a developer platform such as Facebook, have become hotbeds for virtual goods purchases, social gaming, sweepstakes and advertising-based promotions.  Many of these are based on custom-designed and developed third party applications and widgets, which are veritable revenue drivers for the platform operators.  Several months ago Apple modified the terms for its iPhone application development agreement (via an amendment to the iPhone SDK terms)  to specifically permit app-based contests and sweepstakes.  Specifically, Apple added the following language: “Your Application may include promotional sweepstakes or contest functionality provided that You are the sole sponsor of the promotion and that You and Your Application comply with any applicable laws.” However, questions have arisen regarding the legality of running these games and promotions via such applications and platforms.  At their core, these questions focus on the legal distinctions between lotteries, contests and sweepstakes, distinctions that could mean the difference between a highly successful promotion and a high-profile legal headache. Continue Reading »

Apple recently posted an “App Store Tip” on its iPhone Dev Center putting developers on notice that location-based applications, whose primary purpose is to deliver geo-targeted ads, will no longer be permitted in the Apple Apps Store.  Apple permits developers to use Apple’s “Core Location” framework included in the iPhone OS software to build location-based apps to determine the current location of users and deliver geographically targeted information (e.g., local weather, nearby ATMs, restaurants, etc.).  However, Apple requires developers to solely distribute apps which provide “beneficial information” rather than apps that “primarily enable mobile advertisers to deliver targeted ads based on a user’s location”.  Apple has stated that it will return any apps that fall into the latter category to the developer for modification. Continue Reading »