1. Key Tips to Success with Mobile Apps Wednesday 5 March
2014The Diverse Law Firm
2. Key Tips to Success with Mobile Apps Innovation Tax Relief5
March 2014 2014 Grant Thornton UK LLP. All rights reserved. 3. Good
morningRichard D Hill R&D specialist, Innovation tax relief
team Tax Senior Manager T: +44 (0)1865 799803 E:
[email protected] 2014 Grant Thornton UK LLP. All rights
reserved. 4. Objectives123Introduce the benefits of innovation tax
relief Outline the operation of R&D tax relief Discuss how the
Patent box could affect you 2014 Grant Thornton UK LLP. All rights
reserved. 5. Why make R&D tax relief claims? SummaryLarge
companiesSME companies30%125%*Cash value for profitable
companies6.9%** (7.2%***)25%**Value of payable credit for
lossmaking companies(7.2%***)24.75%Extra tax deduction* For
expenditure incurred on or after 1 April 2012 ** For tax rates of
23% and 20% respectively *** Under the new large company RDEC
scheme for expenditure incurred on or after 1 April 2013 2014 Grant
Thornton UK LLP. All rights reserved. 6. Why make R&D tax
relief claims? Summary Effective Rate of R&D Tax Relief
35.00%Tax saving as a percentage of qualifying spendEffective tax
saving30.00%25.00%20.00%15.00%10.00%5.00%0.00%
4/1/20074/1/20084/1/20094/1/2010 SME Relief 2014 Grant Thornton UK
LLP. All rights reserved.4/1/20114/1/2012Large Relief4/1/2013 RDEC
Relief4/1/20144/1/20154/1/2016 7. Definition of a small or medium
enterpriseAn SME company meets the following tests: 1. Number of
employees 500 and 2. Turnover 100m or 3. Balance sheet total 86m.
2014 Grant Thornton UK LLP. All rights reserved. 8. What are
qualifying R&D activities for tax purposes?R&D occurs when:
a project seeks an advance in science or technology, and activities
take place which seek to resolve the scientific or technological
uncertainty involved in making this advance 2014 Grant Thornton UK
LLP. All rights reserved. 9. What do we mean by an advance?In this
context, an advance in science or technology means an advance in
the overall knowledge or capability in the field. This could
include: a completely new item or product (for yourselves or a
client) new knowledge for the field an appreciable improvement to
an existing process or product 2014 Grant Thornton UK LLP. All
rights reserved. 10. What do we mean by uncertainty?Uncertainty can
arise when: it is unknown whether the advance is possible it is
unknown how to achieve the advance the company attempts to adapt
technologies from a different industry combining technologies that
may otherwise be well understood 2014 Grant Thornton UK LLP. All
rights reserved. 11. 'Routine' activities as part of a larger
R&D project Scientific and technological uncertainty applies at
the level of the project as a whole Routine tasks can qualify if
the project viewed as a whole is R&D 2014 Grant Thornton UK
LLP. All rights reserved. 12. Categories of qualifying
expenditureExpenditure on R&D must fit into one of the
following categories: Staff costs Externally provided workers
Consumable items Software Subcontractor costs Contributions to
independent research 2014 Grant Thornton UK LLP. All rights
reserved. 13. How? Process of preparing a claim1 2 34Scoping
QualificationQuantification Documentation 2014 Grant Thornton UK
LLP. All rights reserved. 14. Any questions? 2014 Grant Thornton UK
LLP. All rights reserved. 15. Patent Box: An overview A new relief,
which commenced 1 April 2013 10% tax rate on profits on qualifying
IP 60% relief in 2013/14 increasing to 100% 2017/18 given as an
adjustment to relevant IP profit election within 2 years of end of
accounting period in which income arises can revoke but cannot then
re-elect for 5 years. 2014 Grant Thornton UK LLP. All rights
reserved. 16. Patent Box: what qualifies? patents granted by the UK
IPO or EPO exclusive licenses a product only needs one patented
component integral to product however small 2014 Grant Thornton UK
LLP. All rights reserved. 17. Patent Box: qualifying income sales
of patented items or sale of products incorporating a patented
invention licence fees or royalties from qualifying IP income
arising on the sale of patents income arising from infringement of
IP rights notional arm's length royalty income for using qualifying
IP in a process or services 2014 Grant Thornton UK LLP. All rights
reserved. 18. The Patent Box - eligible profits 2014 Grant Thornton
UK LLP. All rights reserved. 19. Patent Box things to consider Can
you apply for new patents? Does the patent box affect the business
case for patenting your IP? Can any licence agreements be reviewed
or renegotiated? What impact does your international IP structure
have? Review of internal reporting systems. 2014 Grant Thornton UK
LLP. All rights reserved. 20. Questions 2014 Grant Thornton UK LLP.
All rights reserved. 21. Key Legal Tips to Success with Mobile Apps
John Warchus, Partner, Clarkslegal LLPThe Diverse Law Firm 22.
Development Agreement Explosion in the creation of apps
Pre-contract matters Type/aims of the app Proper procurement
process Pricing/Payment Fixed or time & materials Ensure
milestones in place SpecificationsThe Diverse Law Firm 23.
Development Agreement Acceptance Does the app meet the
specification? Remedies if the app is non-compliantProtection
against liability User-generated content need to have effective
takedown procedures in place EULA terms for consumer-facing appsThe
Diverse Law Firm 24. Data Protection & Privacy No exemptions
for apps - same rules apply as elsewhere Use of data must be set
out clearly Explain features of app/info to be accessed User to be
allowed to accept/reject some functionality Single accept button
may not be enoughThe Diverse Law Firm 25. Intellectual Property Who
owns the IP in the app? Created by employees or third party? Rights
of the client v the developer Clear, express terms with third
parties Reliance on existing software/platform? Open source
software need to be carefulThe Diverse Law Firm 26. Compliance with
Platform Providers Terms If app is marketed via a platform... The
apps functionality/content must be compatible with platforms terms
Apple is more prescriptive than Google, e.g. Apple alerts cannot be
overridden Who is responsible for compliance the client or
developer?The Diverse Law Firm 27. Earning Revenue from Apps
Several ways of commercialising apps: Pay per download In-app
purchases Advertising Sponsorship Subscription/pay-wallThe Diverse
Law Firm 28. CV John heads up the Commercial & Technology team
at Clarkslegal He has dealt with all aspects of IT, Intellectual
Property and commercial law since qualifying in 1990. John and his
team are recognised as experts in these areas by independent UK
legal directories Clarkslegal is a full service law firm with
offices in Reading, London and Cardiff [email protected]+44
118 953 3956www.clarkslegal.com The Diverse Law Firm 29. A Mobile
Tour Paul Swaddle DESIGN | DEVELOP | DISTRIBUTE 30. A LOOK AT THE
INDUSTRY What works in mobile 31. Industry Stats 32. Industry Stats
33. Industry Stats 10 app categories in the order of largest
revenue from top to bottom. 34. Industry Stats 35. MAKING APPS PAY
Financial models 36. In-App PurchasesCandy Crush Candy Crush,
following the popular freemium model has achieved daily revenues of
$802,077 with 32,660 daily installs and over 8 million active users
37. Mobile DonationsThank you for your 5 donation to Kids Company,
Charity Number 1068298. Your money will help support vulnerable
inner-city children and young people.Kids Company Brand/Client:
Kids Company Service: Mobile donation Service launch: 12/2009
Media: Mobile, print 38. Creating Brand AwarenessPeri Products
Periproducts approached Pocket App to deliver a solution for one of
their flagship products, a portable mouth freshening spray called
'UltraDex'. The solution needed to tie in a Christmas theme for a
December launch. The key objective was to create more brand
awareness around the product. 39. Educating ConsumersChimp Shop The
team at Pocket App was tasked to develop a mobile game to address
alcohol consumption awareness and provide a platform to discuss the
burning issue while keeping the users engaged. 40. Lead
GenerationPanasonic Tough Book Pocket App developed an interactive
mobile game with elements of data capture and lead generation for
Panasonic to use across their range of Tough Pads across various
events and conferences. 41. GREAT APPS Why are some apps better
than others? 42. What Makes a Good AppVoice (Speaker) Touch
Accelerometer Ears (Mic)Location (GPS) 43. What Makes a Good App
44. What Makes a Good App 45. What Makes a Good AppScanning the
Night SkyUsing your iPhones Compass, Starmap is your tool for
viewing the night sky from your actual location and smoothly
scanning across the horizon with a panoramic view 46. What Makes a
Good AppManhattan Apartments for Sale in Augmented Reality 47. What
Makes a Good AppDiscover, explore and share more music, TV shows
and ads you love. 48. THE FUTURE OF APPS Where is the industry
heading 49. The Future of Apps 50. [email protected] @pocketapp
or @paulswaddle Tel: +44 20 7183 4388
