Yet Another Tech IP Lawsuit: Apple Sues Amazon Over App Store Name

DailyFinance: "Apple says it holds the trademark to the 'App Store' name. That may be decided in court. The suit was filed in the federal court for the Northern District of California. The complaint stated that people might think the Amazon Appstore is owned by or associated with Apple."

Apple: if we get you subscribers, we deserve a cut

Ars Technica:

It has been almost two weeks since The Daily made its debut on the iPad, but Apple has finally announced its in-app subscription terms for other offerings in the App Store. The system is open to all publishers of content-based apps—music, newspapers, video, and magazines, but not insurance policies. Anyone who sells subscription-based content outside the App Store must also use Apple's system, giving Apple a 30 percent cut. Hello in-app Netflix subscriptions?

"Our philosophy is simple—when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing," CEO Steve Jobs said in a statement. "All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app."

Apple's announcement went on to emphasize that publishers are not limited to using the App Store for subscriptions; they're allowed to use their own websites to sell subs. They can even offer free access via their apps to existing out-of-app subscribers (so, if you subscribe to a magazine in print form and that magazine lets you get iPad subscriptions for free as part of your agreement, that's still allowed). However, companies cannot offer those types of subscriptions as the only options within their iOS apps—just like Apple's newly enforced rule with e-books, publishers must go all-in with Apple's subscriptions and their own, or they can't be on the App Store.

Oh, and the subscriptions offered within iOS apps must be the same price or less as the company's other offerings, and the apps can no longer link to an outside store where users can purchase content. ...

Apple sets deadline for Amazon's Kindle app to change

Tecca:

Apple has now taken the next step in its attempt to enforce the app store policy of not allowing iOS apps to use content which was purchased from an outside source. It's announced that as of March 31st, all apps must make the content they use available for purchase from within the app itself — paying Apple the customary 30% which it receives from every app store transaction.

To illustrate what will be changing, we'll use Amazon's Kindle app for iPhone and iPad as an example: Prior to the change, Kindle customers could purchase their reading materials straight from the Amazon website, and then load and read them via the Kindle app on their iPhone or iPad.

Apple's problem with this setup seems to be that it isn't seeing a cut of the money; Amazon distributes the app for free and all transactions are made directly through Amazon. After March 31st, Kindle users will need to be able to purchase their reading material through the Kindle app itself, which means Apple will receive 30% of the revenue.

What happens next is anyone's guess. Amazon could comply with the decision, and either absorb the hit to its Kindle proceeds, jack up the price of app-purchased reading materials to offset Apple's cut, or simply call Apple's bluff and allow the app to remain the way it is. Whatever their decision, it's going to be an interesting and tense couple of months between Amazon and Apple.

News Corp. Launches "The Daily" iPad Newspaper

NYTimes: "Rupert Murdoch on Wednesday pushed the send button on The Daily, a news application designed for the iPad that he hopes will position his News Corporation front and center in the digital newsstand of the future. ... "

Apple: Nothing Has Changed. Except For This One Thing ...

Jason Kincaid, Techcrunch:

Last night the New York Times published a report stating that Sony’s E-Reader application had been rejected from Apple’s App Store, because it used a transaction system other than Apple’s In-App Payments. What’s worse, Apple was apparently blocking applications from downloading content that had been purchased outside the application — which could spell bad news for Amazon’s Kindle platform.

Now an Apple spokesperson has given us this statement:

“We have not changed our developer terms or guidelines. We are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase.”

Huh?

At first glance it looks like the NYT article was simply mistaken — Apple is saying that its terms and guidelines are the same. Except now it’s apparently choosing a different way to actually enforce those terms, which makes the report seem accurate after all.

The most relevant passage from Apple’s developer guidelines — which were only published in September, mind you — appears to be section 11.2, which states:

Apps utilizing a system other than the In App Purchase API (IAP) to purchase content, functionality, or services in an app will be rejected.

Now, Amazon’s Kindle app doesn’t conduct its purchases through the app itself — users are instead kicked off to a browser where they actually buy their books, and that content is then synced to the Kindle app. Apple’s rule is worded vaguely enough that it can claim this workaround is in violation of the guidelines. But it obviously hasn’t been enforced like this before now, so the notion that nothing has changed is clearly false.

It also doesn’t make a whole lot of sense from the user’s perspective. Apple is effectively telling developers that they can offer two purchase flows for content: one through the browser, and another via in-app purchases. Apple is obviously assuming people will prefer the latter because it’s quicker and simply requires the user to enter their Apple password. But developers have an incentive to push users toward the browser flow so that they don’t have to give Apple a 30% cut of each purchase. Which could mean we start seeing some bizarre checkout flows that are anything but user friendly.

Apple denies claim that Sony Reader, Kindle in danger on iOS App Store

AppleInsider:

... Wall Street Journal blogger John Paczkowski has reported official comment from Apple spokesperson Trudy Miller, who said the company has not "changed our developer terms or guidelines," while noting that "we are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase."

That would be the reverse of the situation reported by the Times, and also makes more sense. Pulling popular titles such as Kindle, and similar content-access apps including Dropbox, Hulu , Netflix and Pandora, would do little to benefit Apple.

That would be the reverse of the situation reported by the Times, and also makes more sense. Pulling popular titles such as Kindle, and similar content-access apps including Dropbox, Hulu+, Netflix and Pandora, would do little to benefit Apple.

In-app option required, but not exclusive

Instead, as Paczkowski explained, "Apple wants its cut on sales enabled by its iOS devices, it has an established guideline that allows it to take it and that’s what it’s doing.

"Developers are still free to send customers to their own Web stores, but they must also offer them the option of purchasing content within their apps themselves, and they must route those sales through Apple which will then take its percentage."

This harmonizes with Apple's previous policy, enabling users to buy through iTunes (and allowing Apple to earn a cut for facilitating the convenience) without forcing all content to be purchased within iTunes. For example, Amazon can sell Kindle-DRM ebooks directly from its website or through its own Kindle device, and iOS Kindle app users can sync those purchases to their iPhone, iPod touch, or iPad. ...

Apple's Sony app rejection poses serious questions

eBook Magazine:

... It’s a brave man who second guesses Apple but I can’t see them suddenly pulling the rug from under the likes of Kindle – the PR fallout would be disastrous for them.

On the other hand, if Apple were to move to make iBooks the only/default ebook app now’s probably the best time to do it. The iPad has sold fantastically well but its successor – now probably only weeks away from launch – is likely to sell even better.

Cutting third party ebook stores adrift before a new wave of iPad owners take delivery of their devices compartmentalizes the fall out.

As is always the case when Apple extends the higher of the wall around its garden, some speculate about legal action any disgruntled third parties might take.

The problem here is that the biggest potential loser if Apple were to kick ot third party ebook apps is Kindle, yet could Amazon really ask any court to rule against a closed, single retailer ebook platform without creating an instant case for opening up the Kindle to other retailers? ...

Magazine Publishers Anxiously Seeking iPad Subscription Deals from Apple

AppleInsider: "As the iPad-only newspaper The Daily is expected to launch with a new subscription service in the near future, major magazine publishers are still looking to reach a deal for recurring application subscriptions on the iPad. ... "

Apple's App Store on Pace to Surpass Total iTunes Music Sales by March

AppleInsider: "The average iOS device has seen more than 60 applications from the App Store downloaded on to it, putting Apple's digital download destination for the iPhone and iPad on pace to eclipse the iTunes Music Store this March. ... "