|Amazon’s new and controversial appstore feature|
|Tuesday, 15 May 2012 16:32|
Amazon made a controversial announcement regarding its application purchases and related services.
In that announcement Amazon told that developers can make profits from their applications while making the users spend money. It is a way of making revenue by the developers in every app irrespective of its initial downloading price. That means developers, such as Apple, Microsoft and Google, can make money even from the apps that were downloaded by the user at free of cost. This controversial announcement can very well give rise to patent related litigation issues. This new announcement of Amazon is all about the purchase services that will be included within the apps. So, while using the app user will have to make certain purchases by spending money. Then only the uses will be make use of all features of the app.
This particular mechanism has already been in practice in Apple’s iOS and Google’s Android platforms. However, over a period of time this practice of including sales of services in several apps damaged the interests of patent holders. Last year Lodsys, a Texas based company has raised alarm in this regard and brought out the endangered litigations that are going to come up.
To counter the claim of Lodsys, Google, Microsoft and Apple said that they hold the licences of app technology used in their devices. That licence gives them all the rights over each and every app. However, Lodsys clarified that the licence held by developers like Apple, Google and Microsoft was not covering the apps that were developed by third parties and made available in their stores.
It also said that Amazon was not as such holding licence of any app technology and can not make any claim over any app. It also said that it would continue to demand for licences from the companies who are trying to infringe patents of third parties. So far Amazon has not made any comment in this regard and a Google rep refused to comment.
Amazon app store has been posing strong competition to Google app store, commonly known as Android store. Flurry Analytics, an app usage analysis company, released a report recently in which it compared the revenue making potentials of all major platforms. This analysis said that Amazon has been making more revenue than Android in sale of apps and other services. For every $1 spent by a user in Apple store, Amazon was making 89 cents and Google stood last by making only 24 cents.
Distimo, another mobile analysis company, released a report which said that nearly 65 percent of apps that are available in Amazon store are paid apps and the remaining 35 percent are available for free of cost. According to the company, these paid apps are contributing to the revenue making by Amazon in a big way. With the lack of much paid apps, Google has not been able to make good revenue out of its app store. The analysis has also said that Amazon made stable profits in 2011.