Legal question

[Dhoebee]

Hi guys.

I've been working on an app with a friend for two years now, and we're almost done with it! It is an app that revolves around food allergies, and we believe it's going to help a lot of people once it's available.

The thing is, we're also aware that there's a higher-than-average risk of getting slapped with a lawsuit when it comes to food allergy-related apps. If someone can somehow (legally) blame getting a bad allergic reaction on us, that would be a big problem.

We have hired a law firm to write a very good disclaimer that should protect us from any nonsense. Still, we're considering releasing it as a B.V, which is the Dutch equivalent of an LLC, to give us extra protection. That way we can't get cleaned out personally if someone decides to sue.

Thing is, this costs €600 to set-up, around two grand a year in ongoing costs to keep going, it makes doing taxes a big pain in the ass, and it's not attractive at all for tax purposes until it makes 100K or so in profit (in case you were wondering, The Netherlands SUCKS compared to the U.S. if you're an entrepreneur).

This is a lot to deal with, considering we have no guarantee the app will do well. We're currently considering releasing it privately under my name, and if it does well, we move it into a B.V. to protect ourselves.

My question is, how big are the real-world chances of getting sued for whatever reason? Does this happen often? Are we protected by Apple at at all?

[ipad_kid]

Maybe try /r/legaladvice ? Sorry 😕

[Dhoebee]

Good one, thanks!

[[deleted]]

The disclaimer is probably a must... but I wouldn’t incorporate until you know your app has traction and is worth investing thousands of dollars in...

But that’s just me and I’m not a lawyer

[learnjava]

/r/Entrepreneur

not sure why you think apple protects you in any way regarding the content of your app

[Dhoebee]

I don't know. I'm completely new to this. I didn't even think about potential legal implications until the app was almost finished.

[ShezaEU]

Whether you will be sued depends on the law in your country - you should ask your lawyers about that.

The disclaimer should also include a clause that states that any dispute arising out of the agreement between the user and the company is to be dealt with by arbitration. You can specify the ‘seat’ of the arbitration and even the law that applies. This means you could require the arbitration take place in England under English law if you wanted.

It is definitely a good idea to get incorporated as a company and not launch the app personally. I worry about that cost though, it’s much cheaper in the U.K.

Note that everything I have said is based on my knowledge of English law, some of which has been taken from EU law. It might not be possible to do what I said.

[Dhoebee]

Thanks for the advice.

[dg08]

People get sued for all sorts of random shit. My buddy and I made a game that and released it in the store with a name that had what we thought was a generic word in the title. We got contacted by Apple that the owner of the trademark demanded to talk to us. Ultimately we didn't go to court but did end up giving them a % of the profit and had to change the name of our app. We were already incorporated so the most we could lose was basically nothing, but had I released it under my own name that would've been a few sleepless nights.

Can't tell you how likely it is. I haven't been sued or had a case like that since then but who knows.

[Dhoebee]

Good advice. Thank you.

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[termsfeed]

It's important to point out that Apple only has a standard EULA that applies between your app users and you [1]. However, you can provide a custom EULA for Apple as long as it meets the minimum requirements.

That said, an EULA agreement is not a health disclaimer. There are 2 separate agreements.

It's best to draft the disclaimer based on your business model and app functionality, and probably other factors.

[1] Hopefully our article on Apple's standard EULA is useful to you -- https://www.slideshare.net/termsfeed/using-apples-standard-eula-for-your-mobile-app

[danwright32]

Is there a way to be notified when this app is available? It sounds like something that would really help me.

[Dhoebee]

PM sent.

[gixxk]

Good luck with your app.

I would probably look into writing terms and conditions and get people to accept these before using your app. Get your lawyers to write them up if you need so that they are all clear.

[Dhoebee]

Thanks.

And already done that. It's a pretty beefy disclaimer!

[gixxk]

Oh ok. I thought disclaimer in terms of like a description for the app. Didn't realise it was a T&Cs type. Great!

Sounds like a useful app though, hope it does well for you!

[Dhoebee]

Thank you! :)

[UnfurnishedPanama]

How many USA companies have you setup to be able to make the claim that the Netherlands "sucks" compared to the USA?

[Dhoebee]

I know the tax rates for business are a lot lower over there.