I don't see it. iTunes Store reports 'This application is not available from purchase from the U.S. store' (via Tap Tap Tap's direct link off their app page)
I'm actually surprised that the big guys didn't get preferential treatment and have the app back in the store in a few days. Kudos to Apple for fairness.
I would definitely not call tap tap tap "big guys". They are just indie iphone devs with some successful apps. They have no leverage on apple at all. If they are gone, there are 10 competitors that can take their spot.
"Big guys" are companies with content that Apple needs. Electronic Arts, News Corp, Disney, etc...
I'd bet Apple gives preferential treatment to them.
I had 2 Cease and desists and took apps down ands nothing bad happened yet.
[knock on wood]
I know how this feels, my very first app (and mind you I'm still very much a noob and learning) was called iSketch and I got a letter saying it sounded too much like etch a sketch, so I renamed it iDraw but then I got another email from somebody telling me that they have the trademark for that, so now it's just draw and knowing my luck somebody is going to get mad at me for that.
On another side note about the average joe knowing about this whole thing, I'm a developer and I had no idea till this thread.
I know how this feels, my very first app (and mind you I'm still very much a noob and learning) was called iSketch and I got a letter saying it sounded too much like etch a sketch, so I renamed it iDraw but then I got another email from somebody telling me that they have the trademark for that, so now it's just draw and knowing my luck somebody is going to get mad at me for that.
On another side note about the average joe knowing about this whole thing, I'm a developer and I had no idea till this thread.
Now that's bad luck lol
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I know how this feels, my very first app (and mind you I'm still very much a noob and learning) was called iSketch and I got a letter saying it sounded too much like etch a sketch, so I renamed it iDraw but then I got another email from somebody telling me that they have the trademark for that, so now it's just draw and knowing my luck somebody is going to get mad at me for that.
On another side note about the average joe knowing about this whole thing, I'm a developer and I had no idea till this thread.
There are no live trademarks covering iDraw for a graphics program (there is one for software to generate loan documents). You can search the trademark database here.
You can't copyright a name, only trademark it, and they're only valid if actually registered. That guy got you to change your name just because he wanted to use it.
Etch-A-Sketch doesn't sound very reasonable either, but it probably wouldn't have been worth it to fight with Ohio Art's lawyers.
You'll be 100% fine with Draw as it's a generic term, but likewise you can't complain if someone else releases an App named Draw (though I don't think Apple allows two apps with the same name, so in that sense you'll be fine).
Disclaimer: This is not legal advice, consult your attorney for more details.
If you are even moderately successful as a developer I recommend getting an LLC to protect your assets. That way even if the worst happens, they can't take your house, only the assets that belong to your LLC (app income).
Quote:
Originally Posted by barrettj
There are no live trademarks covering iDraw for a graphics program (there is one for software to generate loan documents). You can search the trademark database here.
You can't copyright a name, only trademark it, and they're only valid if actually registered. That guy got you to change your name just because he wanted to use it.
Etch-A-Sketch doesn't sound very reasonable either, but it probably wouldn't have been worth it to fight with Ohio Art's lawyers.
You'll be 100% fine with Draw as it's a generic term, but likewise you can't complain if someone else releases an App named Draw (though I don't think Apple allows two apps with the same name, so in that sense you'll be fine).
Disclaimer: This is not legal advice, consult your attorney for more details.
If you are even moderately successful as a developer I recommend getting an LLC to protect your assets. That way even if the worst happens, they can't take your house, only the assets that belong to your LLC (app income).
To expand on that, even if you're not successful but hope to be/think you will be in 1 - 3 years (successful being defined as making a profit after accounting for all your expenses, including devices and such) it might be worthwhile to become an official business for tax purposes. If your app store stuff is just a hobby, then you don't get to deduct your expenses - if you're a business you do.
The protection is definitely worth it, as well. In my state, an accountant will charge you around $500 to create an LLC for you (which you can write off as a business expense), and (in my state) it's only $25 a year to maintain that.
California is $800/yr unfortunately. Oh well, the cost of business =)
Quote:
Originally Posted by barrettj
To expand on that, even if you're not successful but hope to be/think you will be in 1 - 3 years (successful being defined as making a profit after accounting for all your expenses, including devices and such) it might be worthwhile to become an official business for tax purposes. If your app store stuff is just a hobby, then you don't get to deduct your expenses - if you're a business you do.
The protection is definitely worth it, as well. In my state, an accountant will charge you around $500 to create an LLC for you (which you can write off as a business expense), and (in my state) it's only $25 a year to maintain that.
To expand on that, even if you're not successful but hope to be/think you will be in 1 - 3 years (successful being defined as making a profit after accounting for all your expenses, including devices and such) it might be worthwhile to become an official business for tax purposes. If your app store stuff is just a hobby, then you don't get to deduct your expenses - if you're a business you do.
Just to clarify, individuals selling apps on the app store for profit are still running an "official" business, regardless of whether they choose to form an LLC or continue to operate as an individual (i.e., a sole proprietor). Even as a sole proprietor, they can certainly deduct business expenses on their Schedule C -- you wouldn't need to form an LLC just for the purpose of deducting expenses, though as you said there may be other good reasons to consider forming an LLC or corporation.
Yup this is absolutely true. If you are selling apps you should be deducting cost of Macbook, dev program, iphone/ipod, even things like your cell phone bill are legitimate business deductions. So even if you don't make a dime you can still make money by taking these deductions off of your taxable income.
#1 reason to form an LLC or Corp is asset protection imo.
Quote:
Originally Posted by ChrisL
Just to clarify, individuals selling apps on the app store for profit are still running an "official" business, regardless of whether they choose to form an LLC or continue to operate as an individual (i.e., a sole proprietor). Even as a sole proprietor, they can certainly deduct business expenses on their Schedule C -- you wouldn't need to form an LLC just for the purpose of deducting expenses, though as you said there may be other good reasons to consider forming an LLC or corporation.
Just to clarify, individuals selling apps on the app store for profit are still running an "official" business, regardless of whether they choose to form an LLC or continue to operate as an individual (i.e., a sole proprietor). Even as a sole proprietor, they can certainly deduct business expenses on their Schedule C -- you wouldn't need to form an LLC just for the purpose of deducting expenses, though as you said there may be other good reasons to consider forming an LLC or corporation.
To clarify, by "becoming an official business" I meant getting an EIN (not solely becoming an LLC, the LLC is for protection aspect) and having that be what Apple is using instead of your SSN.
According to my accountant (who used to work at the IRS), unless you have a EIN and are using a checking account that is using that EIN (and not your SSN) then the IRS generally wouldn't consider you to be a business and consider it a hobby. If you then got audited, you'd owe on everything you deducted.
Quote:
Yup this is absolutely true. If you are selling apps you should be deducting cost of Macbook, dev program, iphone/ipod, even things like your cell phone bill are legitimate business deductions. So even if you don't make a dime you can still make money by taking these deductions off of your taxable income.
I've also been told to be very careful with deducting things like your macbook and your cell phone bill. Unless your cell phone is SOLELY used for business calls, it is not a valid deduction. Same thing with the Macbook, it has to be used solely for business use. I'm told the iPhones and iPods (as far as the cost of the actual device) is safe as the reason you're getting them is testing, so they can still have personal things on them (as you want to be testing how your apps would function in an actual usage scenario).
I have no clue as to the validity of what I've been told, but I'd rather be covered if I get audited.
To clarify, by "becoming an official business" I meant getting an EIN (not solely becoming an LLC, the LLC is for protection aspect) and having that be what Apple is using instead of your SSN.
According to my accountant (who used to work at the IRS), unless you have a EIN and are using a checking account that is using that EIN (and not your SSN) then the IRS generally wouldn't consider you to be a business and consider it a hobby. If you then got audited, you'd owe on everything you deducted.
My understanding is that getting an EIN and a separate checking account for your business helps to reaffirm that your business is legit, but that there are other factors as well, including actual profits/losses, so it's not so cut-and-dried. I'd imagine that it's less risky for someone making tens of thousands of dollars in app sales to deduct expenses than someone posting a loss. In any case, I didn't mean to suggest that deducting expenses is necessarily a safe thing to do, just to clarify for others that sole proprietors are real businesses too.
I only brought this up because there seems to be general confusion on here (not from you specifically) as to the difference between forming a specific type of business entity (like an LLC) vs being generally engaged in a business activity. Some developers seem to be under the misconception that they don't need to worry about things like business licenses/permits, self-employment taxes, etc., because they signed up as an "individual" and aren't running a "real" business. The bottom line is that if you're selling apps in the store with the intention of making a profit, you need to be aware of the legal and tax responsibilities that come with running a business, both at the federal level, but also with your state and local governments as well. I suspect that many developers are selling apps completely unaware that they're actually considered to be sole proprietors and may be operating in violation of local laws as a result.
Quote:
I've also been told to be very careful with deducting things like your macbook and your cell phone bill. Unless your cell phone is SOLELY used for business calls, it is not a valid deduction. Same thing with the Macbook, it has to be used solely for business use. I'm told the iPhones and iPods (as far as the cost of the actual device) is safe as the reason you're getting them is testing, so they can still have personal things on them (as you want to be testing how your apps would function in an actual usage scenario).
I've been given similar advice as well. I'd definitely suggest talking to an accountant before deciding whether to deduct expenses.
my issue is as mightybao stated, it's 800 a year for an llc in california and I'm not a big developer, heck I'm not a small developer. I think as of right now I would have to put nearly all my earnings towards the llc yearly cost.
Now if I ever did somehow make it big and somehow made that one app that sold like hot cakes filled with crack I would go and do what I needed to form a buisness then. I had two friends who weren't developers but were trying to do other e-buisness and formed a LLC, they did ok but the 800 a year killed them and they soon disbanded.