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Mobile apps - legal risks?

8/27/2012

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As I explore the design and uses of Mobile apps, I found this article to be rather good at highlighting some of the dangers to look out for... worth a read if you are exploring this too... Wilna 


Mobile travel apps: enjoy the opportunities but beware of the legal risks


NB: This is a guest article by John Pavolotsky, a practicing legal professional who focuses on technology transactions and other intellectual property matters at Greenberg Traurig.

Mobile apps are pervasive and, in many cases, mobile is becoming the preferred interface to access software applications, especially in the travel sector where the fit is natural between provider and the traveler on-the-go.

But while some time may still pass until vacations are booked primarily via an app, we are certainly much closer today than only a few years ago.

Pitfalls

With opportunity, of course, comes some risk. The process of developing an app is still relatively new. That said, in many cases, the issues presented in connection with developing an app are similar to ones associated with developing custom software.

For example, apps may be, and in fact, tend to be, developed by third parties, and without a contractual provision presently assigning the developer’s intellectual property rights in the app to the client, unless the app is a work-made-for-hire, under federal (US) copyright law, the app will be owned by the developer.

To that end, care should be taken to prepare a consulting agreement addressing, among other things, ownership of the app and any related intellectual property.

Likewise, the agreement should have the developer indemnify the client from any claims made by any third party that the app (including any data accessed or presented by it) infringes on any intellectual property or other rights of that third party.

An indemnity is simply a promise to compensate another entity for a loss.

Things to remember

Mobile travel apps, in particular, require access to and presentation of data from a multitude of sources, such as GDSs (Global Distribution Systems), map platforms, and social networking sites, if there is a social component.

As such, it should be understood by both the developer and the client which sources need to be accessed, whether any licenses (API (application programmer interface) or other) are required, and the scope and cost of these licenses.

If, for example, the API license is for internal use only, and the API will be accessed by the app to present data to consumers, a distribution license will need to be procured, even though it is debatable whether APIs are copyrightable, and thus require a license.

Many apps still do not have privacy policies.

Here is an example concerning recent developments in California, US. Apps that collect personal data from California consumers must have a conspicuously posted privacy policy, in the view of California’s Attorney General, Kamala Harris, as stated in the “Joint Statement of Principles” issued on February 22, 2012 and signed by seven leading technology companies (Facebook, Amazon, Apple, Google, Hewlett-Packard, Microsoft, RIM).

In practice, this requirement is universal, because a developer may not be able to prevent California consumers from purchasing the app, or will likely not want to.

The Joint Statement provides, among other things, that in the application submission process there will be included:

  • either an optional data field for a hyperlink to the app’s privacy policy or to a statement describing the app’s privacy practices
  • an optional data field for the text of the app’s privacy policy or a statement describing the app’s privacy practices
These elements make it easier for developers to comply with the requirement to have a conspicuously posted privacy policy.

Privacy policies generally describe how personal data is collected, used, and shared. Contuining the example outlined arlier, the California Online Privacy Protection Act (2004), which is cited by California Attorney General Harris in the Joint Statement, provides additional details about the contents of such policies.

Of course, the California Department of Justice, and in particular the newly-formed Privacy Enforcement and Protection Unit, may prosecute violations of other data privacy and security laws. For example, if app developers do not abide by the posted policies, there is liability under California’s Unfair Competition Law and/or False Advertising Law.

Further, others, including the (US) Federal Trade Commission, have taken an acute interest in privacy policies and security practices.

Failure to post or abide by a privacy policy, or to comply with any other applicable laws, will give rise to a breach of the distribution or license agreement between the developer and the relevant app store and in turn to an indemnity, requiring the developer to pay for all of the liabilities and costs incurred by the app store due to the breach.

Data – lots of it

Apps generate a sea of data, and it is thus critical for the developer to address use and ownership of the data, whether in a privacy policy, data policy or mobile EULA (end user license agreement) discussed below.

Data may have tremendous commercial value, especially in the case of free apps, for which the primary revenue source is in-app advertising, which is wholly dependent on the data collected by app.

Many apps, and especially those that are travel-related, feature LBS (Location-Based Services). Some may know that CTIA (Cellular Telecommunications Industry Association) has published a Best Practices and Guidelines (March 23, 2010) (“Guidelines”), “intended to promote and protect user privacy as . . . ‘LBS’ are developed and deployed”.

By way of example, the Guidelines would apply to a developer that makes available through a digital app store an app that requires the user to be located in order to provide roadside assistance or directions to a local travel hot spot.

The Guidelines are premised on notice (of how the location information will be “used, disclosed and protected”) and consent (which may be implied if a user requests a service, such as roadside assistance, which cannot be provided without a user’s location). The Guidelines address a number of other topics, including the security and retention of the location information.

The Guidelines, however, do not address, except by reference to illustrative “Location Based Privacy Policies” available via a link in the Guidelines, international LBS issues, such as transfer and processing of data to and in a country other than where the services are being used.

Regardless, the LBS provider should, whether in a privacy policy, EULA, or otherwise, obtain consent to such transfer and processing and, more broadly, and as discussed, address issues like use and disclosure of the data collected by the provider.

As practical matter, in vetting apps, digital app stores will ask whether or nor the app has LBS capabilities and will want to be assured that, at the very least, the Guidelines are being met.

End-user issues

Lastly, as part of the application submission process, the developer will have the option to include its own mobile EULA to accompany the app, to state the rights and remedies of the consumer and developer with respect to the app.

The distribution or license agreements for each app store are, as one might expect, rather different. One digital app store might require the developer to incorporate certain terms into the mobile EULA. Another might not have any such requirement, but simply provide that if there is conflict between the mobile EULA and the distribution agreement, the latter will govern.

At any rate, each distribution or license agreement with the particular app store should be carefully reviewed.

As for the EULA itself, it should reference the app’s privacy policy and address, among other things, ownership, use restrictions, warranty disclaimers, and limitation of liability, and more generally, just like the privacy policy, be specifically tailored to the capabilities of the app and be consistent with the company’s business practices.

Good luck!

NB: This is a guest article by John Pavolotsky, a practicing legal professional who focuses on technology transactions and other intellectual property matters at Greenberg Traurig.


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Luxury trends - Feedback from Virtuoso Travel Mart

8/24/2012

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I haven't attended Virtuoso for a number of years and strangely miss the buzz and camaraderie of the luxury travel community. Wilna 






6 Luxury Travel Trends To Know Now
By Annie Fitzsimmons

There was an audible gasp in the room when Francis Ford Coppola came on stage to speak to 4,000 luxury travel advisors, hoteliers, cruise lines, tour operators and more at The Bellagio in Las Vegas. Cameras and iPhones started clicking and hundreds of flashes went off. He was a surprise guest at the newly rebranded Virtuoso Travel Week, The Bellagio's largest meeting of the year, and spoke about The Godfather (of course), his family, friends, and career as a winemaker and hotelier in Belize and Italy. "If you're doing something you love with people you love to be with, that's a great start," he reflected.

This love for a career in selling luxury travel and relationships was flourishing in Las Vegas. Our leisure time is valuable, and this week in Vegas is where many travel trends are established and announced. 350,000 (yes you read that number right) "speed-dating" appointments between advisors and suppliers in cavernous Bellagio ballrooms set the tone. Luxury travel advisors treat this as a buying trip for their clients and instead of clothing, they are selecting the best travel experiences around the world. The previous name for this long-running event of 24 years, Virtuoso Travel Mart, sounded too corporate and even boring. The gathering works - they estimate that $450 million in annual sales is generated from advisors who attend.




I had the opportunity to attend and learn more about this community of like-minded travelers, as well as gather information on what advisors are selling to clients and what should be on your radar for the upcoming year. First and foremost, there are millions of luxury travelers on the road and they are eager for new experiences. Sustainability was a common thread of many conversations I had, and while still important, it's nothing new.

1. River Cruising
River cruising is the fastest growing sector of the travel business, and it's not just in Europe. Gary Murphy, the VP of National Accounts for AmaWaterways, says the company is growing faster than 10% a year. Their first ship was built in 2006 and there are 15 ships now. It is still a great option for older travelers but AmaWaterways has seen a younger clientele booking, and has spent $600,000 putting free WiFi on the ships for those that need to be connected. They also claim they are the only river cruise line that has built dedicated storage facilities for bikes, very popular with active cruisers. Viking is continuing to roll out their improved Longship-style boat, for a total of 14 new ships over 2 years, with cutting-edge technology and spacious suites. For exotic, truly impressive river cruising, Aqua Expeditions was all the buzz, announcing a new Mekong River cruise in Cambodia and Vietnam in January 2014, while still filling their popular Amazon River/Peru experience.

2. Younger, More Affluent Travelers
Virtuoso says they have seen major growth in the traveler from 40-55 years of age using advisors to help plan their trips. Many advisors told me that young, successful families in their early 30s and 40s are planning adventurous trips with young children and even babies. They want their children to have these experiences young and they don't want to give up their own travel freedom.

3. Undiscovered, Unfamiliar Locales
Bhutan is high on the list for travelers searching for something new. The Ambassador to Bhutan, Lhatu Wangchuk, spoke at the event about Bhutan, a small country "under the protection of the great Himalayas." Bhutan was isolated for centuries and is now experiencing incredible growth, with 50 hotels currently being built. Luxury brands like Aman and Taj have properties there. However, "we have no plans for Disneyland or bungee jumping," the ambassador joked. Other countries on hot lists include Colombia, Russia, Vietnam, Cambodia and for the next ten years, South America will continue to shine with Peru, Ecuador, and Argentina growing even more in popularity.

4. Space TravelWe've been hearing about it for years, but it's closer than you think. Virgin Galactic is one of the companies developing suborbital space flights and they are currently in the advanced stages of flight testing, with over 500 people booked on flights. Tony Poe sells these flights and says "We are not just selling space flights. This is a whole new era in tourism." Virtuoso has already sold more than $10 million for Virgin Galactic, including its first full charter (6 seats). Space tourism should bring in between $600 million and $1.6 billion in revenue in the first ten years, says Reuters.

5. More All-Inclusive Options
James Shillinglaw, Editor-in-Chief of Agent@Home, Vacation Agent, andTravel Pulse, mentioned that travel has been headed to more all-inclusive options for quite some time, citing frustrations that travelers have with resort fees, airline fees, and huge cruise line add-ons. The image of an all-inclusive experience is changing with more hotels and cruise lines delivering great options. Stacy Small, President of L.A. based Elite Travel International, recently returned from The BodyHoliday LeSport in St. Lucia raving. "I am always skeptical about "all-inclusives" but LeSport is in a category all its own after $25+million in renovations with more planned, including rooms and the entire spa. I was most impressed with the healthy and gluten-free dining options and range of fitness classes from spinning to paddleboard yoga. This is the IT spa of the Caribbean," she says. On Seabourn cruises, known for small, intimate all-suite ships, all dining venues are complimentary, from room service to restaurants. There are open bars all over the ship and tipping is not required or expected.

6. New Value From Luxury Operators
Abercrombie & Kent, a name synonymous with luxury travel, unveiled one of the biggest pieces of news in Vegas, announcing their new Connections line debuting in September 2012. The 17 small-group itineraries around the world including India, Peru, Croatia, Africa and Australia will cost 30% less than their average trip, using hotel brands like Fairmont, Hyatt Regency, Marriott and Intercontinental.

About Annie Fitzsimmons

Virtuoso provided 4 nights of accommodation and admission to Virtuoso Travel Week. Annie Fitzsimmons is a freelance travel and hotel writer based in Manhattan.  Connect with her @anniefitz or atannie@anniefitzsimmons.com.
Source: Forbes

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Is marketing dead?

8/15/2012

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Bill Lee wrote an interesting article on the Harvard Review blog saying Marketing is dead! I agree, but want to qualify, Marketing as we KNOW it is dead, but the way we market is just changing! Here are some of the shifts.... Wilna 







Restore community marketing.
 Used properly, social media is accelerating a trend in which buyers can increasingly approximate the experience of buying in their local, physical communities. For instance, when you contemplate a major purchase, such as a new roof, a flat screen TV, or a good surgeon, you're not likely to go looking for a salesperson to talk to, or to read through a bunch of corporate website content. Instead, you'll probably ask neighbors or friends — your peer network — what or whom they're using.

Companies should position their social media efforts to replicate as much as possible this community-oriented buying experience. In turn, social media firms, such as Facebook, should become expert at enabling this. They can do this by expanding the buyer's network of peers who can provide trustworthy information and advice based on their own experience with the product or service.

For example, a new firm, Zuberance, makes it easy and enjoyable for a firm's loyal customers to advocate for the firm on their social media platform of choice. At the moment one of these customers identifies himself as a "promoter" on a survey, they immediately seend a form inviting them to write a review or recommendation on any of several social media sites. Once they do, the Zuberance platform populates it to the designated sites, and the promoter's network instantly knows about his experience with the firm.

Find your customer influencers. Many firms spend lots of resources pursuing outside influencers who've gained following on the Web and through social media. A better approach is to find and cultivate customer influencers and give them something great to talk about. This requires a new concept of customer value that goes way beyond customer lifetime value (CLV), which is based only on purchases. There are many other measures of a customer's potential value, beyond the money they pay you. For example, how large and strategic to your firm is the customer's network? How respected is she? 

One of Microsoft's "MVP" (Most Valuable Professional) customers is known as Mr. Excel to his followers. On some days, his website gets more visits than Microsoft's Excel page — representing an audience of obvious importance to Microsoft, which supports Mr. Excel's efforts with "insider knowledge" and previews of new releases. In return, Mr. Excel and other MVPs like him are helping Microsoft penetrate new markets affordably.

Traditional marketing may be dead, but the new possibilities of peer influence-based, community-oriented marketing, hold much greater promise for creating sustained growth through authentic customer relationships.

More blog posts by Bill Lee

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A thought...

8/1/2012

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"You will never change your life until you change something you do daily.”
- Mike Murdock - 
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    Wilna's Blog

    Staying relevant, delighting guests & crafting successful brands excites me.

    Here is a collection of articles that have interested me - definitely not all written by me, but all personally read and found by me!

    I hope you find them informative too!

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