Apple Inc. v. Amazon.Com, Inc.

Filing 40

EXHIBITS re 39 Declaration in Support, Continuation of Exhibits filed byAmazon Digital Services, Inc., Amazon.Com, Inc.. (Attachments: # 1 Exhibit 13a, # 2 Exhibit 13b, # 3 Exhibit 13c, # 4 Exhibit 13d, # 5 Exhibit 13e, # 6 Exhibit 14, # 7 Exhibit 15, # 8 Exhibit 16, # 9 Exhibit 17)(Related document(s) 39 ) (Givan, Sarah) (Filed on 6/1/2011)

EXHIBIT 16

App Store - Wikipedia, the free encyclopedia

Page 1 of 10

App Store
From Wikipedia, the free encyclopedia

Apple App Store
The Apple App Store is an Apple app for app
download on Apple's app capable Devices (the
iPhone, iPod Touch, iPad and Mac) offered by Apple
Inc., which allows users to browse and download
applications from the iTunes Store that were
developed with the iOS SDK or Mac SDK and
published through Apple. Depending on the
application, they are available either for free or at a
iii
cost. The applications can be downloaded directly to a
g.
po (0 is
target device, or downloaded onto a PC or Mac via
iTunes. 30% of revenues from the store go instantly to
Apple, and 70% go to the seller of the app.P 1 The App
Developer(s)
Apple Inc.
Store opened on July 10, 2008 via an update to
iTunes. On July 11, the iPhone 3G was launched and
Initial release
July 10, 2008
came pre-loaded with iOS 2.0.1 with App Store
Stable release
iOS (Apple) 4.3
support; new iOS 2.0.1 firmware for iPhone and iPod
Touch was also made available via iTunesP 1 As of
Operating system iOS and Mac OS X
October 20, 2010, there are at least 300,000 thirdPlatform
iPhone, iPod Touch, iPad,
party apps officially available on the App Store. 31 As
iTunes, Mac OS X
of January 18, 2011, the App Store had over 9.9
billion downloads, which was announced via the
Type
Software update, Digital
company's "10 Billion App Countdown". 141 At 10:26
distribution
AM GMT on Saturday, January 22, 2011, 151 the 10
billionth app was downloaded from Apple App Store.
License
Proprietary
The median revenue per application is estimated to be
Website
apple.com/itunes/
$700, although on data no more publicly available. [61
(http://www.apple.com/itunes/)
The average price of non-free application is estimated
between $3.5 and $4. [71[8] The distribution of price
follows a power law distribution (the Zipf—Mandelbrot law): "Although prices can be freely chosen,
most sellers price their application at multiple of $5 (minus 1 cent)". [81
After the success of Apple's App Store, and the launch of similar services by its competitors, the term
"app store" has been used to refer to any similar service for mobile devices. 19][101[11][12] However, Apple
claims "App Store" as a trademark. 1131 The term "app" has become a popular buzzword; in January 2011,
"app" was awarded the honor of being 2010's "Word of the Year" by the American Dialect Society.L 141
On October 20, 2010, Apple announced the Mac App Store which was eventually launched on January
7, 2011. It is similar to the one for iOS devices, only it has applications designed for Mac computers. 1151
The Mac App Store is only accessible by using Mac OS X Snow Leopard or the upcoming Mac OS X
Lion.

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The App Store is accessible from the iPhone, iPod Touch and iPad via an iOS application by the same
name. It is also the only way to directly download native applications onto an iOS device without
voiding the warranty. Web applications can be installed on these devices, bypassing the App Store
entirely, but they tend to have less functionality. The store is also accessible through iTunes, and then on
any operating system for which iTunes is provided (Mac OS X and Windows 1161).
In February 2011, Apple announced its new subscription based service which will allow publishers to
set the length and price of a subscription. Previously, new magazine or news releases would be sold on a
per release basis. The new service allows publishers to sell their content through their apps allowing
users to receive the new content over specified period of time. More interestingly is that Apple will
allow publishers not only to sell from iTunes where revenue will be shared (70% for the publisher, 30%
for Apple), but they are also allowing publishers to distribute their subscriptions directly from their
websites where no revenue will be shared with Apple. 1171

Contents
• 1 iPhone SDK
• 2 Number of launched applications
• 2.1 Revenue Share
• 2.2 Milestones
• 2.3 Most popular apps
•
•
•
•
•
•

3 Application ratings
4 Approval (and rejections) of apps
5 Enterprise App Stores
6 Similar services for other devices
7 References
8 External links

iPhone SDK
The Software Development Kit for iPhone OS was announced at the iPhone Software Roadmap event
on March 6, 2008. The SDK allows developers running Mac OS X 10.5.4 or higher on an Intel Mac to
create applications using Xcode that will natively run on the iPhone, iPod Touch and iPad. A beta
version was released after the event and a final version was released in July 2008 alongside the iPhone
3G. 1181 This major Roadmap event (coupled with a large distribution program for 3rd-party developers),
later became known as the iPhone Developer Program, which currently offers two distribution tracks for
3rd-party developers: Standard, and Enterprise. 1191
Applications distributed through the standard program can be sold exclusively through the iTunes Store
on Mac and Windows, or on the App Store on the iPhone, iPod Touch, and iPad. 1191 Developers who
publish their applications on the App Store will receive 70% of sales revenue, and will not have to pay
any distribution costs for the application. However, an annual fee is required to use the iPhone SDK and
upload applications to the store. 1181

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Applications developed through the enterprise program,
officially the "iOS Enterprise Developer Program" (iDEP), are
exclusively for institutional use and do not get published on the
App Store. This allows corporations, non-profits and government
agencies to develop proprietary "in-house" applications not for
public re1ease.E 191 The enterprise program was updated
September 14, 2010, to allow any organization with a DUNS
number to join. Prior to this date, only organizations with 500 or
more employees could join the enterprise program.

Page 3 of 10

44 Rewind

4

41 Rewind

Una

44 Rewind
)in

To run an application on the iPhone, the application needs to be
signed. This signed certificate is only granted by Apple after the
developer has first developed the software through either the
US$99/year Standard package or the US$299/year Enterprise
package with the iPhone SDK. 1181

Number of launched applications
On July 10, 2008, Apple CEO Steve Jobs told USA Today that
App Store running on iOS 4.2.1
the App Store contained 500 third-party applications for the
iPhone and the iPod Touch, and of these 25% were free.E 201
These third party applications range from business to game applications, entertainment to educational
applications, and many more applications available for free or for sale. On July 11, 2008 the store
opened, allowing users to buy applications and transfer them to an iPhone or iPod Touch with the
iPhone 2.0 software update, which became available through iTunes on the same day. Ten million
applications were downloaded the first weekend.E 211
On January 16, 2009, Apple announced on its website that 500 million applications had been
downloaded. 1221 The billionth application was downloaded on April 23, 2009. 1233
Unlike the apps that come standard on the iPhone (such as the YouTube app, which Apple added
through an iOS software upgrade months before the launch of the App Store), apps downloaded from
the App Store can be removed by the user at a future date.

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Revenue Share
Global Mobile Applications Store Revenue
in Millions of US Dollars

▪ Goosite Android Mar
1 Nokia Ovi Store

t

111 Blackberry App World
•

Apple App Store

2009

2010

Milestones

App Store application availability
has increased in line with
downloads over time.

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Date

Page 5 of 10

Available apps Downloads to date

July 11, 2008E241

500

0

July 14, 2008E211

800

10,000,000

September 9, 2008E251

3,000

55,000,000

October 22, 2008E261

7,500

200,000,000

January 16, 2009E221

15,000

500,000,000

March 17, 2009 [27]

25,000

800,000,000

April 23, 2009E231

35,000

1,000,000,000

June 8, 2009E281

50,000

1,000,000,000+

55,000

1,000,000,000+

July 14, 2009E291

65,000

1,500,000,000

Septernber 9, 2009

75,000

1,800,000,000

September 28, 2009 130113 '] 85,000

2,000,000,000

July 11,

2009[citation needed]

November 4, 2009E 321E331

100,000

2,000,000,000+

January 5, 2010 [3411353

120,000

3,000,000,000+

March 20, 2010E361

150,000+

3,000,000,000+

April 8, 2010E371

185,000+

4,000,000,000+

April 29, 20101381

200,000+

4,500,000,000+

June 7, 2010E391

225,000+

5,000,000,000+

September 1, 2010E 1

250,000+

6,500,000,000+

October 20, 2010 [31

300,000+

7,000,000,000+

Jan 16, 2011E31

400,000+

9,000,000,000+

Jan 22, 2011E4°1

400,000+

10,000,000,000+

Most popular apps
In April 2009, Apple announced the apps which had the most number of downloads since the store was
launched. Among paid apps, the Crash Bandicoot Nitro Kart 3D, by Activision Publishing, was number
1. Among free apps, Facebook was number 1, and Google Earth was number 2.E 411

Application ratings
Apple rates applications worldwide based on their content, and determines what age group each is
appropriate for. According to the iPhone OS 3.0 launch event, the iPhone will allow blocking of
objectionable apps in the iPhone's settings. The following are the ratings that Apple has detailed:

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App Store - Wikipedia, the free encyclopedia

Rating
4+

Description
Contains no objectionable material.
May contain mild or infrequent occurrences of cartoon, fantasy or realistic violence, and
infrequent or mild mature, suggestive, or horror-themed content which may not be suitable
for children under the age of 9.

12+

May also contain infrequent mild language, frequent or intense cartoon, fantasy or realistic
violence, and mild or infrequent mature or suggestive themes, and simulated gambling
which may not be suitable for children under the age of 12.

17+

May also contain frequent and intense mature, horror, and suggestive themes; plus strong
sexual content, nudity, strong language, alcohol, tobacco, and drugs which may not be
suitable for children under the age of 17. Consumers must be at least 17 years old to
purchase apps with this rating. Whenever an app of this rating is requested for download, a
message will appear, verifying if a user is 17 or older, and asking to confirm the purchase
for this reason.

Approval (and rejections) of apps
Main article: Approval of iOS apps
Applications are subject to approval by Apple, as outlined in the SDK agreement, for basic reliability
testing and other analysis. Applications may still be distributed "ad-hoc" if they are rejected, by the
author manually submitting a request to Apple to license the application to individual iPhones, although
Apple may withdraw the ability for authors to do this at a later date. Non-disclosure agreements have
always forbidden developers from publishing the content of their rejection notices, but Apple has now
started labeling their rejection letters with Non-Disclosure (NDA) warning THE INFORMATION
CONTAINED IN THIS MESSAGE IS UNDER NON-DISCLOSURE. Apple later changed the NDA
citing that "it has created too much of a burden on developers" but they did not reverse the decision to
forbid publication of rejection notices. Some applications are not available outside the US App Store at
the request of the developer. Since so many developers have published rejection emails Apple now most
often call submitters to verbally tell them their rejection notice. In addition, Apple has removed software
licensed under the GPL from the App Store after complaints from one of the program's developers,
claiming that the App Store's terms of service are inconsistent with the GPL.

Enterprise App Stores
Because Apple's App Store is for consumers, companies are unable to distribute in-house apps on the
App Store. Under Apple's iOS Developer Enterprise Program companies can publish in-house apps
using an Enterprise App Store [421 with systems such as Apperian EASEJ 431 Apps published with Apple's
iOS Developer Enterprise Program are still subject to Apple's control via the controversial kill switch, [44]
where Apple can revoke a publisher's digital certificate and thereby "kill" the app on user devices.
However, there is no evidence that this has been done in the enterprise environment.

Similar services for other devices
Main article: List of digital distribution platforms for mobile devices

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Following the popularity of the App Store, competitors developed their own software stores. Palm Inc.
published an application store similar to the App Store for Palm devices [451 and announced the App
Catalog for webOS on the Palm Pre that was released on June 6, 2009. Another platform, Android
Market is used in conjunction with Google's Android operating system. Microsoft has released Windows
Marketplace for Mobile, an application store for their Windows Mobile platform.E 461 Nokia has released
The "Ovi Store'4471 (which replaced its earlier "Download!" application) for its S60 and S40 based
mobile devices. Samsung has created Samsung Apps, primarily to cater for its own Bada OS, but also
with support for certain other Samsung devices. RIM also launched its application store BlackBerry App
World.E483 The Nintendo DSi is able to connect to an online store called the "DSi Shop", along with
Sony's PlayStation Portable (PSP) being able to connect to PlayStation Store to download games, etc.

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CNet. 2009-03-04. http://news.cnet.com/8301-17938_105-10188400-1.html . Retrieved 2009-03-08.
-

-

-

-

External links
• The App Store on iTunes (http://www.itunes.com/appstore/) (requires iTunes)
• App Store Downloads (http://itunes.apple.comlen/genre/mobile-software-applications/id36?mt=8)
(iTunes not needed)
• Official website on Apple.com (http://www.apple.com/iphone/appstore/)
• Official iPhone developer site (http://developer.apple.com/iphone/program/)
Retrieved from "http://en.wikipedia.org/wiki/ApP_Store "

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Categories: Apple Inc. services I IPhone I IOS software I ITunes
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