How to Protect an App Idea
Every day, an endless number of new apps are added to the Apple App Store and the Google Play Store, spanning across genres like gaming, shopping, lifestyle, and social media. Not every app reaches a billion downloads, but the first step to creating something incredible is a great idea.
To take your idea from a moment of inspiration to a real app, downloaded by users across the world, it will definitely take some work. Some apps will take a few weeks, but others may take years to design, develop, and test. In the meantime, if you’re interested in fully protecting your intellectual property and your personal assets, we have some suggestions to offer.
Should I Worry About Protection Now?
Before you invest a lot of time and effort into developing and legally protecting an app, consider whether or not you have a strong enough app idea that’s worth the investment. Take the time to evaluate your competition and consider how your app may be different and better than what’s already out there. Documenting the similarities and differences between the apps may also help protect your idea in the long run.
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When you’re evaluating the marketplace, you also need to understand your target market. Think about who they are and why they need your app. Is there a certain gap between what’s available and what your consumers really want? Also, try to find out if users are currently paying for a solution, and how much they may be willing to pay for a superior product.
After you verify that you have a very good app idea, you’ll need to take the appropriate steps to protect it. Below are five steps that you should follow to legally protect your app idea.
1. Form an LLC to Protect Your App
Your first step to legally protect your app idea is to make your company official. This may seem intimidating at first, but with the right support in your corner, you’ll be able to form your own business in less than a day.
The requirements to form an LLC will vary from state to state. Traditionally, you’ll need to submit an application, pay a small fee, and hire a registered agent. Many companies choose to incorporate in Delaware because it has more protections for businesses than most other states. In the long run, this is worth it, even if you have a small company or a single app in development. Forming an LLC will also legally separate you and your personal assets from your business, so you’ll be protected in case someone tries to take legal action against your app.
Even if you live outside of the United States, it’s actually just as easy for non-residents to form an LLC in Delaware. You don’t need a U.S. address, and you won’t need to travel to the U.S. to start your LLC.
2. Copyright an App Idea
How do you copyright an app idea? Well, an idea is just that – an idea. From a legal standpoint, ideas typically aren’t protected under copyright laws. Even if the idea is original, copyright won’t apply until it’s put into a tangible form.
Copyright can, however, apply to things like source code, app copy, and UI designs, meaning that others won’t be able to legally copy your exact code, text, or artwork. As such, app builders typically copyright their app idea as soon as they start to code the project, and there's something tangible that can be protected. You want to make sure that you have everything documented to support any intellectual property claims. Note the dates and times when you started to work on the app, the source code, and any other integral parts of the development process.
Depending on the scope of the project, you may have to work with developers or freelancers who are more skilled in app development than you. In this case, you have to make sure that you have a contract in place that clearly states that you own the copyright of the code. Otherwise, the developer can claim they own the code and do what they want with your app idea.
3. Non-Disclosure Agreements (NDAs)
Some apps can be developed by a single experienced coder, while others will require a full team of professionals. Just keep in mind that the more people you let into your circle, the more you’re opening the door to someone taking your app idea.
To protect your app idea, consider an NDA. A non-disclosure agreement (NDA) is a contract that directs anyone – developers, designers, business advisors – to not share specific information about your app with anyone for a certain amount of time. If any party ends up violating the NDA, you may have legal grounds to seek damages.
The NDA should be drawn up by an attorney to ensure that the most important information about your app idea is protected by the contract, but boilerplate versions are available on the internet if you want to examine them.
4. Trademarks & Branding
The branding of the app is just as important as the app itself. Once you’ve formed an LLC, trademarks and branding become some of the most practical ways to protect your app idea. Once established, your brand, logo, and products can all be trademarked and will become valuable as your app takes off.
Think of the top apps on the market. They all have identifiable icons and a memorable name. These can and should be protected. Your brand is what the end-user will remember most. Registering your Trademark prevents others from stealing your intellectual property or allows you to sue them if they do.
5. Pursue Infringement Cases
The most important step that you can take to protect an app idea is to follow through with action. You’ve taken the appropriate steps to document your app and legally register it with copyright and trademark offices. You have every right to go after those who are trying to steal your app idea, code, user interface, or whatever you have trademarked.
If someone is infringing on your intellectual property, you have the right to go after them to protect your business. For example, if you’ve added your app to the Apple App Store, Apple has a dispute form that you can fill out. Apple will investigate and remove apps that infringe on your intellectual property.
Another step you can take is to send infringing companies a cease and desist letter. If they don’t respond, you can escalate the matter through an attorney.
It’s Worth It to Protect Your App
When you have a great idea for an app, it’s important to take the necessary steps to protect it from becoming someone else’s profitable project. That starts with knowing how to protect an app idea. The average mobile user relies on 9 or 10 apps every day, and 30 apps in a month. With the right app idea, you have a great chance to build something useful and profitable.
Are you ready to take the first step to make your app idea a reality? You can form a Delaware company with Harvard Business Services, Inc. in just a few simple steps.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such sources content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
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There are 2 comments left for How to Protect Your App Idea Legally
Lawyer Sonia said: Tuesday, October 24, 2023I examine the article on "How to Protect Your App Idea Legally" on DelawareInc.com, and I have to say it is a precious useful resource for all and sundry in the tech or startup world. The piece affords clear and concise statistics on the prison components of safeguarding your app idea, a quintessential situation in cutting-edge aggressive market. It emphasizes the significance of trademarks, patents, and confidentiality agreements, imparting actionable steps for entrepreneurs and app developers. Kudos to the writer for breaking down a complicated problem into effortlessly digestible content.
HBS Staff replied: Tuesday, October 24, 2023Hello Sonia,
Thank you for reading our blog and we are glad you found our blog helpful. If you need to form any Delaware companies we are here to assist.
Gus said: Saturday, May 13, 2023I found the article “How to protect an App Idea very informative and valuable.
HBS Staff replied: Monday, May 15, 2023Hi Gus,
Thank you for reading our blog and we are glad you found it helpful. If you have any questions we are here to assist.