Lack of Borders Complicates App Regulations, Conference Told

Hughes said IP laws are not the same everywhere: “Be careful of where you develop an app because some countries have laws stating that any IP developed in the country can’t leave the country. Since compliance in the United States is different from other markets, trying to be all things to all people is difficult. You have to think what is the worst thing that could happen in the worst jurisdiction, and solve for that. But it’s not just complying with regulatory law but company usage rules, such as with the Apple [App] Store."

Possibly the biggest issue is privacy. FTC attorney Sarah Schroeder said developers should first acquire a privacy notification, citing a Pew Research Center report that found that “people will uninstall apps over data collection issues. The FTC recommends letting consumers know how you are going to collect data, what you're going to do with it, and how long you are going to keep it."

Privacy is a loaded word, said John Tomaszewski, general counsel for TRUSTe: “It’s also a very complicated word. I define it as a subjective state when people control information about themselves. It’s based on context. When you talk about privacy you talk about expectation, awareness, and purposes. You're talking about data. You don’t want to surprise your user or make them uncomfortable; user expectation must be managed."

Speakers stressed the importance of never copying a privacy policy from another entity because each app is different. Erin Fonte, an attorney with Cox Smith Matthews, said “the FTC will hold you to what you say you're going to do. With the level of subcontracting, it’s hard to make sure everything matches. … In the mobile space even if the third party screws up, you are still liable from [a] brand risk and contractual perspective. The consumer ultimately holds who they interface with responsible."

By 2015, there will be 220 million smart TVs in homes, speakers on another panel said. Despite the multiple distribution platforms available, they agreed the home TV will remain the center of entertainment, bolstered by apps that will further engage consumers. “Not everyone has three game consoles, but they have three TVs,” said Edward Prince, UltraViolet senior vice president-media and new ventures. “So that’s why it will remain dominant.” Prince was less bullish on smart TVs. “They are under powered,” he said. “That’s where the set-top box has an advantage.” Kirt McMaster, SYN CEO, agreed. “This generation of consoles will be the last,” McMaster said. “Apple is going to migrate billions into the IOS system and will have it fired up in 2013."

Demographics of those who use game consoles “are expanding,” though not to cover all those who now watch TV, said Nick Colsey, Sony vice president-business development. “The drawback of consoles is they are designed for games and have to make sure they work best for that, so connected TV is where first screen interactive apps can live.” Panelists said social TV won’t be a major competitor to connected TV. “Social TV is great sharing feature, a great way to perforate content, but not as a go-alone business model,” Colsey said. “It’s not a company. The new territory going forward is connected TV."

Social TV is a transitory phenomenon from which nobody is making money, McMaster said. “It is not the dog, it’s the tail. It’s a feature.” Colsey predicted all brands and niches, from Red Bull to surfing enthusiasts, are going to become channels via apps. Possibilities for TV content producers are obvious, he said. “We think there is an opportunity to create a deeper experience around a franchise.”