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Legal Issues in Software Development

Various types of data (including personal data) are not only valuable commodities these days, used for commercial and marketing purposes, but can also be used by fraudsters. No wonder the issues of cybersecurity, data protection, and confidential information are critical areas for both companies and individual users. The software industry attaches great importance to legal issues in software development because it understands that the highest data protection standards must carry out proper app development. Failure to do so results in legal risks and poses a threat to the personal assets of both the app creator and the users.

Therefore, when creating a mobile application, website, or even a simple program, consider key legal considerations to ensure the appropriate level of protection. Not only the product's success but also your company's existence will depend on it.

The Crucial Legal Issues

Below are some legal issues that we believe are crucial for software developers, customers, and users.

• Jurisdiction & Jurisdiction Conflicts

If you are launching a product (e.g., a mobile application) internationally, you must ensure that the product complies with local laws. It is worth asking for help from a lawyer specializing in such matters. It allows you to avoid misunderstandings about the laws of the countries where the product will be released.

Unfortunately, there are often situations when a product does not comply with local law, or - in the case of international trade - we are dealing with a situation in which it is difficult to indicate the country whose court is competent to hear the case. There may be a positive conflict when the courts of different countries consider themselves competent simultaneously or a negative conflict when they refuse to initiate and conduct proceedings. Therefore, all legal aspects should be checked beforehand, as any legal or jurisdictional conflicts are time-consuming and costly and often prevent the product from being launched on the market.

• Confidentiality Agreement

Confidentiality agreements should be one of the first documents signed by the software development company and third-party software even before you present your product idea. The point is not to expose your idea to theft or fall into the hands of competitors.

A Non-Disclosure Agreement (NDA) is considered the best-known way to protect a product and maintain confidentiality. However, it is worth remembering that such contracts do not guarantee the complete security of your idea. Still, it will go a long way in taking legal action against anyone who violates its terms.

• Intellectual Property Rights

To ensure that your company has exclusive ownership of the content, design, and source code, there are three techniques to assign intellectual property rights and secure the application idea - trademarks, copyrights, and patents. It ensures that no one else will own or benefit from any aspect of your product.

Copyright can protect your app's source code, design, and content. In addition, it may be protected as a trade secret. Register its name, brands, and logos to ensure product safety. You can also patent your invention, provided it is a new technical solution with an inventive step suitable for industrial application.

• Contract

Contract for software development is the most prominent and natural thing in business. A software development contract is a fundamental aspect of any project. The contract is essential because it describes the development services you expect from your partner. A well-constructed contract defines the scope of responsibility in the event of a dispute and prevents unpleasant surprises. A good contract should contain several details, such as a confidentiality clause, code ownership issues, terms of use of open-source software, and guarantees and obligations. We discussed the contract issues in detail in our article "Contract for Software Development - All You Need to Know."

• Privacy Policy

If your product collects user data, you must be transparent about the information collected and its purpose. You must ensure that you include a privacy policy to protect users' personal information from malicious activities, thereby securing it and building user trust.

Take the time to ensure that your mobile app or other digital product complies with international and local data protection laws and regulations, such as the European Union's General Data Protection Regulation. Paying attention to the guidelines is essential for your business to stay on top of current standards.

If your product is aimed at children, remember that different regulations protect children's rights and privacy. It is worth spending some time on this issue because the failure to adapt the privacy policy to local laws is associated not only with the withdrawal of the product from the market but also with huge financial penalties.

• Publishing the Application in App Stores

If you want to put your app in the App Stores, you must meet many conditions that these stores require. However, you must know that publishing your application in certain app stores does not protect you from legal threats. App stores mainly protect their activities and do not take responsibility for applications that do not fully have legal issues. Therefore, before you place an application in any app store, ensure you have carefully established the rules that users must accept and follow to download and use your mobile application.

If advertisements appear in your application, they must also comply with the legal regulations applicable to the given country.

• Limit Your Liability

Legal issues are often highly complicated, and without the help of a lawyer, it is often impossible to develop an appropriate solution that will benefit both your company and users. Professional legal assistance in this matter is essential for every company, regardless of whether we are talking about early-stage startups or large companies with many years of experience.

You must be aware that your responsibility level varies depending on your company's legal status. Some business forms protect your assets (e.g., limited liability company). In other forms, you are responsible for everything with all your private assets. Therefore, carefully analyze which form of business running will be best for you.

This will help you maintain an appropriate level of responsibility.

Conclusion

Software development is a big challenge that requires appropriate knowledge and experience. For this reason, it should be run by an experienced software development company. It is worth realizing that legal issues during software development are as important as the proper functionality of the product or its timely delivery. Some claim that legal issues are even more important because not only the application's success but also the entire company's existence depends on the proper protection of users' interests.

As an outsourcing company, we have been creating successful projects that are appreciated by users and comply with all legal regulations and standards for many years.

If you want to find out how we create our projects, make an appointment for a free consultation with our specialists.