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Make Apple end user license agreements work for you

3rd Mar 2020 | Commercial Law
A lady uses her Apple iPhone

What is an End User License Agreement (EULA)?

An EULA acts as the contract between an App Developer and an End User. It gives an End User a license to use the app and sets out the limitations to that licence. It also protects the interests of the App Developer and protects the intellectual property (IP) within the app.

If an App Developer develops apps for distribution on the Apple App Store, Apple provides a default End User License Agreement (EULA) that they can choose to use for the app. This will be the default agreement in place if no bespoke EULA is provided.

The below sets out the two ways in which app distribution on the Apple App Store can be structured:

What are the benefits of using a custom EULA for developers?

An App Developer may choose to create a custom EULA, rather than adopt Apple’s default EULA, for the following reasons:

  • more control over terms
  • additional clauses
  • more detailed terms

If an App Developer wishes to make an App available on the App Store, and they also wish to create a custom EULA for that app, the custom EULA will need to include the compulsory minimum terms set out by Apple (Minimum Terms).

Historically when drafting EULAs, we have included a clause stating that ‘App Store terms prevail’.

Instead, we now recommend including the below explicitly in any custom EULA drafting for apps which are for distribution on the Apple App Store.

Suggested wording for app developer EULAs

On the left is the Minimum Term set out by Apple, on the right is some suggested wording for the EULA/T&Cs.

Acknowledgement
The App Developer and the End User must acknowledge that the EULA is concluded between the App Developer and End User only, and not with Apple, and that the App Developer is solely responsible for the Licensed Application and the content of it. The EULA may not provide for usage rules for Licensed Applications that are in conflict with, the App Store Terms of Service as of the Effective Date (which the App Developer acknowledges they have the opportunity to review).

 

Please note that these Terms are between us and you, not Apple. We are solely responsible for the [DN: app name] App and any content produced on it.

 

If there are any conflicts between these Terms and the Apple Store Terms of Service, the Apple Store Terms of Service will apply.

Scope of Licence

 

The license granted to the End User for the Licensed Application must be limited to a non-transferable license to use the Licensed Application on any Apple-branded Products that the End User owns or controls and as permitted by the Usage Rules set forth in the App Store Terms of Service, except that such Licensed Application may be accessed and used by other accounts associated with the purchaser via Family Sharing or volume purchasing.

 

The licence granted to you in these Terms to use the [DN: app name] App and Services [check this is defined] is for use on Apple-branded products, owned or controlled by you. The [DN: app name] App may be used or accessed by other accounts associated with you via Family Sharing or volume purchasing.

 

We’re giving you personally the right to use the [DN: app name] App and the Service [check this is defined] as set out above ("how you may use the [DN: app name] App"). [check this is the case] . You can’t transfer the [DN: app name] App or the Service to someone else, whether for money, for anything else or for free. And if you sell any device on which the [DN: app name]  App is installed, you must remove the [DN: app name] App first. You must also keep all passwords secure and not provide this information to anyone else.

 

Maintenance and Support

 

The Developer must be solely responsible for providing any maintenance and support services with respect to the Licensed Application, as specified in the EULA, or as required under applicable law. The Developer and the End User must acknowledge that Apple has no obligation whatsoever to furnish any maintenance and support services with respect to the Licensed Application.

 

If you need any support with respect to the [DN: app name] App, please contact us, not Apple as they are under no obligation to help with any support or maintenance questions arising out of use of the [DN: app name] App.

 

Warranty

 

The Developer must be solely responsible for any product warranties, whether express or implied by law, to the extent not effectively disclaimed. The EULA must provide that, in the event of any failure of the Licensed Application to confirm to any applicable warranty, the End User may notify Apple, and Apple will refund the purchase price for the Licensed Application to that End User, and that, to the maximum extent permitted by applicable law, Apple will have no other warranty obligation whatsoever with respect to the Licensed Application, and any other claims, losses, liabilities, damages, costs or expenses attributable to any failure to conform to any warranty will be the Developer’s sole responsibility. 

In the event of any failure of the [DN: app name]  App to conform to any applicable warranty, you may notify Apple, and Apple will refund the purchase price for the [DN: app name] App to you; and that, to the maximum extent permitted by applicable law, Apple will have no other warranty obligation whatsoever with respect to the [DN: app name]  App, and any other claims, losses, liabilities, damages, costs or expenses attributable to any failure to conform to any warranty will be our sole responsibility.

 

Product Claims

 

 
You and the End User must acknowledge that You, not Apple, are responsible for addressing any claims of the End User or any third party relating to the Licensed Application or the End User’s possession and/or use of that Licensed Application, including, but not limited to: (i) product liability claims; (ii) any claim that the Licensed Application fails to conform to any applicable legal or regulatory requirement; and (iii) claims arising under consumer protection, privacy, or similar legislation, including in connection with Your Licensed Application’s use of the HealthKit and HomeKit frameworks. The EULA may not limit Your liability to the End User beyond what is permitted by applicable law.

 

We are responsible for addressing any claims from you or any third party relating to the App or the end- user’s possession and/or use of the [DN: app name] App, including, but not limited to:

(i)               product liability claims;

(ii)              any claim that the [DN: app name] App fails to conform to any applicable legal or regulatory requirement; and

(iii)             claims arising under consumer protection, privacy, or similar legislation, including in connection with [DN: app name]’s use of the HealthKit and HomeKit frameworks.

 

Intellectual Property

 

 
You and the End User must acknowledge that, in the event of any third party claim that the Licensed Application or the End User’s possession and use of that Licensed Application infringes that third party’s intellectual property rights, You, not Apple, will be solely responsible for the investigation, defence, settlement and discharge of any such intellectual property infringement claim.

 

In the event of any third party claim that the [DN: app name] App or your possession and use of the the [DN: app name] App infringes that third party’s intellectual property rights, the [DN: app name] App, not Apple, will be solely responsible for the investigation, defence, settlement and discharge of any such intellectual property infringement claim.

 

Legal Compliance

 

 
The End User must represent and warrant that (i) he/she is not located in a country that is subject to a U.S. Government embargo, or that has been designated by the U.S. Government as a “terrorist supporting” country; and (ii) he/she is not listed on any U.S. Government list of prohibited or restricted parties.

You represent and warrant that

(i)               you are not located in a country that is subject to a U.S. Government embargo, or that has been designated by the U.S. Government as a “terrorist supporting” country; and

(ii)              (ii) you are not listed on any U.S. Government list of prohibited or restricted parties.

 

Developer Name and Address  
You must state in the EULA Your name and address, and the contact information (telephone number; E-mail address) to which any End-User questions, complaints or claims with respect to the Licensed Application should be directed.

 

[insert as appropriate]

Third Party Terms of Agreement

 

 
You must state in the EULA that the End-User must comply with applicable third party terms of agreement when using Your Application, e.g., if You have a VoIP application, then the End-User must not be in violation of their wireless data service agreement when using Your Application.

 

 

You must comply with applicable third party terms of agreement when using the [DN: app name] App.

 

Third Party Beneficiary

 

 
You and the End User must acknowledge and agree that Apple, and Apple’s subsidiaries, are third party beneficiaries of the EULA, and that, upon the End User’s acceptance of the terms and conditions of the EULA, Apple will have the right (and will be deemed to have accepted the right) to enforce the EULA against the End User as a third party beneficiary thereof.

Apple, and Apple’s subsidiaries, are third party beneficiaries of these Terms, and that, upon your acceptance of these Terms, Apple will have the right (and will be deemed to have accepted the right) to enforce these Terms against you.

 

For more information, help or advice, please contact Ca on 0191 211 7890 or email [email protected].

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