In the post smart phone environment, software developers and publishers are increasingly providing end users (Users) with the opportunity to make micro-transactions (In-App Purchases) within their software (App). Under this business model, the publisher or developer offers their App, or at least a limited version of it, to consumers at no upfront cost. Users then may have the opportunity to make In-App Purchases using real world currency, such as:
- a one off fee to access an advertisement free version of the App;
- access to additional content within the App;
- a digital currency for use within the App; or
- consumable items such as extra lives or turns in games.
The In-App Purchase model has proven successful for many publishers, but as with all business models, it comes with its fair share of legal risk. [Read more…]
