Starting Your Own App & Company: Legal Issues You Need to Get Right
Launching an app might begin with a great idea, but turning that idea into a successful and legally compliant business is a whole other story. Whether you’re developing a productivity tool, a game, or a business-to-business solution, there are critical legal considerations at every stage of the journey—from forming your company to onboarding your first users.
Below, we walk through the key legal issues to address when developing and launching a mobile app in Australia. If you don’t get these right from the beginning, you may face significant commercial and legal problems down the line.
1. Choosing the Right Business Structure
How you structure your business has long-term implications for tax, liability, IP ownership, and investor readiness.
☐ Decide on a legal structure (e.g. sole trader, partnership, company, or trust).
☐ Register your business name with ASIC (if different from your company name).
☐ Obtain an ABN and register for GST if required.
☐ Ensure appropriate shareholder/partnership/trust deed agreements are in place if others are going to be involved.
2. Intellectual Property (IP) Ownership
Your app is intellectual property. It’s critical to lock down ownership and avoid disputes—especially if you’re using external developers or assets.
☐ Confirm who owns the IP in the source code and ensure contracts contain assignment clauses.
☐ Assign the IP to the business entity if required.
☐ Ensure all media in the app (images, videos, audio) is properly licensed.
☐ Review and comply with all third-party software licensing terms.
☐ Register your brand name and logo as trademarks with IP Australia.
☐ Secure relevant domain names (and close variations to prevent squatting).
3. User Agreements & Legal Contracts
You need clear legal documents between you and your users, contractors, and partners. These not only protect you but also set expectations.
☐ Draft an End User Licence Agreement (EULA) to govern the use of your app.
☐ Include clauses to prohibit reverse engineering and misuse.
☐ Set Western Australia as the governing jurisdiction.
☐ Prepare Terms of Use to govern user conduct and termination rights.
☐ Create a Privacy Policy compliant with the Privacy Act 1988 — this is already required for some, and will soon apply to all businesses.
☐ If you list your app on Apple or Google platforms, review their terms carefully, especially regarding commission and dispute resolution.
4. Australian Consumer Law (ACL) Compliance
Even if your app is for business users, many ACL protections still apply—particularly where the value of the transaction is under $100,000.
☐ Disclose all costs, subscriptions, and fees transparently.
☐ Avoid misleading or deceptive conduct in all advertising.
☐ Include refund policies that reflect your obligations under the ACL.
5. Limitation of Liability & Disclaimers
These clauses won’t protect you from all risks, but they are essential in managing your exposure to legal claims.
☐ Include disclaimers about:
- Accuracy and reliability of app content
- Usage being at the user’s own risk
- Bugs, interruptions, and third-party outages
☐ For B2B apps, consider limiting liability for:
- Data loss
- Consequential or indirect losses
- Breaches of non-excludable guarantees (to the extent permitted by law)
6. Data Protection & Cybersecurity
Cyber threats and data breaches are a legal (and reputational) risk—especially where personal information is involved.
☐ Implement reasonable and industry-standard security safeguards.
☐ Ensure compliance with the Notifiable Data Breaches scheme.
☐ Develop a data breach response and notification plan.
7. Ongoing Legal Compliance
Legal compliance isn’t a “set and forget” task. Laws change—and so should your contracts and policies.
☐ Review and update all agreements and policies regularly.
☐ Monitor changes to app store rules and international data privacy laws (especially if you plan to launch globally).
☐ Conduct periodic legal and risk audits.
Need Help?
Navigating the legal requirements for launching an app and setting up your business can be complex—but we’re here to help.
If you have any questions or concerns about any of the legal issues above, or if you need assistance preparing contracts, policies, or registering your IP, please get in touch with us.