Although Apple’s App Store first opened its marketplace just over two years ago, some have already estimated mobile app piracy to be responsible for over $450 million in “stolen” revenues. And with iPhones flying off shelves faster than ever, piracy a growing concern for both Apple and the many app developers contributing to the App Store.
Cambridge-based mobile startup mtiks has a solution that protects apps from pirating and makes sure developers get paid for their work. Their framework (currently in private beta – see sign up instructions here) allows developers to install safeguards against unpaid downloads of their apps on jailbroken iPhones, iPads, and iPod Touches.
Jailbreaking is the process of altering an Apple iOS device to unlock new functionality and enable the installation of third-party applications without having to go through Apple’s tightly controlled App Store. Although there are some good reasons for jailbreaking (wifi tethering, increased customization, downloading apps rejected by Apple) many people do it to also access “cracked” or free versions of paid apps.
That’s where the anti-piracy solution mtiks is creating comes into play. Integrating with the mtiks framework allows developers to monitor unpaid downloads of their apps and take some control of what happens in the shady app markets of the wild. For instance, the technology is able to detect if someone is running a pirated version of the app and displays an option to buy it (via the legitimate iTunes App Store) when those users launch the app – a simple yet effective measure to recover some lost revenue.
Past estimates suggest that nearly 1 in 12 of all iPhones have been jailbroken and that number is only expected to increase.
Of course, Apple has disapproved of jailbreaking from the beginning, claiming the process is illegal and a violation of customer contracts. But just this week, Steve Jobs & Co. were dealt a blow when the Copyright Office ruled that jailbreaking no longer violates copyright law. That’s crappy for Apple, cool for people that want to jailbreak their iPhones, and potentially bad for app developers both big and small.
Still, some argue that app cracking isn’t actually piracy, but rather a service. Popular online cracked app directory Hackulous claims, “Our intentions are to provide a service that helps people trial applications freely, to combat the lack of a refund policy on the App Store.”
In reality, though, cracking isn’t as noble as they might try to make it sound. This idea of a “Try before you buy” mentality was shown to be a more of an “excuse to steal” by the folks at Pinch Media. After looking at usage from over 4 million jailbroken devices, they concluded that out of all pirated app installs, only 0.43% ever lead to a legitimate purchase (too much “trying,” not enough “buying”). This is just the problem that mtiks is working to address. So besides simply thwarting piracy, mtiks helps ensure that more freeloading downloaders are converted to paying customers. Recently, in fact, a developer of a popular news app with mtiks functionality found that 21% of people running pirated copies showed interest in paying for the app.
What are the perks and downsides of jailbreaking an Apple device in your eyes? How can developers better protect their software? Please share your thoughts in the comments section below.
