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Mobile apps remain a profitable and relatively accessible business venture. According to the latest reports, revenue from app sales in New Zealand is forecast to reach new heights by 2025. It’s clearly a huge market, and if you have a brilliant idea for an app, the potential benefits from pursuing it are impressive.
Before you begin developing code, though, there are several legal considerations to ensure your app is well-protected. Keep reading to learn more and to update your legal toolkit for a 2025 market!
Developing An App? Here’s What You Should Know
Even though entering the app development market is more accessible than many other business ventures, there are important legal aspects that many developers tend to skim over. It’s best to get these matters sorted in the early stages, so you can focus on the creative process and bring your idea to life securely.
Let’s go through some key considerations that are current for 2025.
Mobile App Development Legal Issues
The first thing to consider is getting the right legal agreements in place. You may wonder why you need such agreements when you’re simply developing an app, but these documents are vital for protecting your business ideas and intellectual property (IP).
Protecting your IP and sensitive information is essential – if it ends up in the wrong hands, it could spell disaster for your app. To protect yourself, consider utilising tailored contracts and procedures that reflect the latest legal trends and regulations of 2025.
Here are the main measures you can take to safeguard your venture.
Internationally Enforceable Contracts
Many apps are used across multiple regions. If you want your app to be accessible outside of New Zealand, it is crucial to obtain internationally enforceable contracts. These agreements include clauses that account for the global nature of your business, ensuring that your legal protections remain valid even in foreign jurisdictions.
Such contracts typically include international arbitration clauses rather than forcing you to rely solely on governing law and jurisdiction stipulations.
Mobile App Privacy Obligations
As an app developer, you must adhere to all relevant privacy requirements. In New Zealand, the Privacy Act 1993 and the updated New Zealand Privacy Principles oblige businesses collecting customers’ personal information to have a comprehensive Privacy Policy in place.
Private information includes details such as:
- Name
- Address
- Phone number
- Bank details
A robust Privacy Policy informs app users how their data is stored, for how long, and the purposes for which it is used. For additional guidance, you might want to review our data protection and privacy compliance resources, which offer insights tailored to the 2025 regulatory landscape.
Different regions also have varying privacy requirements. For instance, while New Zealand maintains its own standards, the European Union adheres to the General Data Protection Regulation (GDPR), which outlines more stringent obligations in certain areas.
If your app collects users’ personal information, ensure that your Privacy Policy complies with all jurisdictions in which you operate.
Mobile App Confidentiality
Maintaining confidentiality is another crucial aspect of protecting your app. You don’t want sensitive information regarding your venture to be leaked and exploited. Taking proactive steps—such as including confidentiality clauses, Non-Disclosure Agreements (NDAs), and Non-Compete Agreements—can help safeguard your proprietary data.
For example, a Non-Compete Agreement restricts ex-employees or contractors from joining competitors or engaging in similar business activities within a specified timeframe or geographical area. Implementing such measures can substantially minimise risks, provided they are crafted reasonably under current law.
Mobile App Liability
Liability refers to the legal responsibilities your business holds towards its users. While app development is generally low risk compared with other ventures (think of activities like skydiving!), the online nature of apps does expose you to cybersecurity risks, including data breaches and scams.
It’s important to limit your liability for such risks through exclusion clauses or specific liability waivers. These clauses must be clearly drafted to restrict your exposure to potential claims. For further details on how to structure these clauses, see our guide on contract law essentials.
Always consult with a legal professional for accurate, up-to-date advice.
Protecting Your Mobile App’s IP
Your intellectual property (IP) is one of the most valuable assets of your business. IP encompasses intangible assets such as logos, slogans, and design elements. The best way to protect your IP is by securing trade marks or patents through the Intellectual Property Office of New Zealand. For more guidance, you can read our article on protecting your IP.
If certain elements of your IP cannot be registered, it is advisable to include robust confidentiality clauses in your contracts or NDAs to maintain protection.
Mobile App Terms And Conditions
Having comprehensive Mobile App Terms and Conditions is essential for regulating how users interact with your app. These terms set out the obligations users must meet before using your app, such as account creation requirements or age verification.
Furthermore, Terms and Conditions can help limit your liability by setting out the limits of your responsibilities in the event of issues during app usage. To learn more about drafting effective user agreements, please see our website terms and conditions guide.
Contracts With Key Parties
App development often involves collaborating with external parties—whether hiring employees, contractors, or sourcing materials from suppliers. It’s important that these business relationships are governed by a detailed contract to ensure all parties are aligned and to provide a remedy in the event of a dispute. For more information on managing business relationships, check out our contractor and employment agreement tips.
Mobile App Disclaimers
When offering a product or service online, much is beyond your control after a purchase is made. This is where a disclaimer can become useful. Disclaimers can shield you from claims by clarifying that certain risks or shortcomings are outside your responsibility. For instance, if your app features sensitive content, a well-placed disclaimer can mitigate liability if issues arise. For further reading on exclusion of liability, please refer to our unfair contract terms resource.
App Store Agreements
Various app platforms such as the Apple App Store or Google Play Store have their own specific policies and agreements. Ensure that your app complies with all the criteria specified in these agreements before submission. Familiarise yourself with the platform-specific terms, as non-compliance could result in removal from the store. Our Get Started page can help point you in the right legal direction.
End-User Licence Agreement (EULA)
An End-User Licence Agreement (EULA) is a contract between you and the app users. Much like your Terms and Conditions, a EULA stipulates how the app is to be used and can help prevent unauthorised copying or infringement of copyrighted materials. For more detailed advice on EULA drafting, do see our related posts on what makes a contract legally binding.
Do I Need An App Development Agreement?
If your business plans to hire a developer to create the app, then yes – a Software Development Agreement is strongly recommended. This agreement will cover crucial matters such as the scope of work, deadlines, milestones, and detailed specifications, all tailored to suit your business needs. As highlighted earlier, having clear contracts in place is a vital step in protecting your business interests.
Our team of expert contract lawyers is ready to assist you with drafting and reviewing your agreements to ensure your project starts on the right foot. You may also wish to explore our comprehensive range of contract services for additional support.
What Apps Are Illegal To Build In New Zealand?
Creating an app is a fantastic business opportunity, but it is essential to ensure that your app idea complies with New Zealand rules and regulations. Some app concepts might fall foul of the law, so it is critical to assess their legality before development.
Let’s explore some examples of apps that can be considered legal or illegal.
Are Call Recording Apps Legal?
Call recording apps allow users to record their conversations. In New Zealand, it is unlawful to record a conversation without the consent of all parties, as stipulated by the Crimes Act 1961. Therefore, if you plan to develop an app that records calls, you must ensure strict adherence to these consent requirements.
Additionally, some app stores enforce their own T&Cs regarding call recording features, so always review the specific platform rules before proceeding.
Are Gambling Apps Legal?
New Zealand law permits users to engage with online gambling, including on mobile apps. However, developers must obtain proper authorisation under the Gambling Act 2003 before providing such services. There is also ongoing discussion about stricter controls and potential app store bans, so proceed with caution if you plan on developing a gambling app.
Are Police Scanner Mobile Apps Legal?
Police scanner apps that allow users to listen to communications from emergency services are legal in New Zealand, provided that the access is authorised for public use. However, there are specific regulations governing the use of this information, and developers must ensure that their app complies with both legal requirements and ethical guidelines.
Do thorough research and potentially consult a legal expert if you intend to develop such an app.
Is Reskinning Apps Legal?
Reskinning an app – that is, changing its visual appearance while retaining its underlying functionality – is perfectly legal. However, it is crucial to ensure that any images or graphics used are fully authorised and do not infringe on any copyright protections. For more on avoiding copyright issues, see our article on copyright considerations.
Furthermore, keeping abreast of updated intellectual property regulations is advisable to ensure ongoing compliance.
Key Takeaways
Creating an app in 2025 can be a highly rewarding business venture, but it is imperative that you have all your legal bases covered. To summarise what we’ve discussed:
- Protecting your intellectual property and maintaining confidentiality is essential.
- Secure legally binding contracts, including internationally enforceable agreements, with key parties.
- Ensure your Privacy Policy complies with New Zealand, EU (GDPR), and other regional requirements.
- Address liabilities and incorporate disclaimers to limit potential legal risks.
- Have comprehensive Terms and Conditions and a robust End-User Licence Agreement (EULA) in place.
- Review and comply with all app store agreements and guidelines before submission.
- If hiring external developers, always use a detailed App Development Agreement.
- Confirm that your app complies with all applicable New Zealand regulations.
In addition, staying informed about evolving technology laws is increasingly important. Regularly reviewing your legal documents with a specialised startup lawyer can ensure that your app remains compliant as the digital landscape changes.
If you would like a consultation on the legal considerations of developing a mobile app, please contact us on 0800 002 184 or email [email protected] for a free, no-obligations chat.
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