5 Major Legal Considerations for Lawyers Advising on a Product Launch

An intriguing facet of technology law involves grasping the process of navigating the legal aspects of a product, starting from its inception to the point of becoming operational (go-live). This process is also referred to as product advisory.

When serving as legal counsel for the launch of a mobile application or the revamping of an existing one, it is crucial to have a firm grasp of the fundamental aspects of app development and how they intersect with regulatory frameworks and legal principles.

As a lawyer advising on launching an app or even overhauling the process of an existing app, there are major legal points of intersection to consider.

We will be going over 5 major legal considerations before launching a product.

Structure

The first step to advising on a product is understanding its structure. The structure provides clarity on the major moving parts of the product, the essence of the transaction targeted for digitalization by the product, and it also outlines the approach to handling crucial matters such as regulatory compliance and risk evaluation. In fact, every other legal consideration might not be easily understood if there is no clear structure.

To have a clear picture of the structure, it is important to understand the product type, the objectives of the product, the features of the product and all the parties interfacing with the product.

Regulatory Compliance

There is no single law that fully regulates every aspect of a digital product. Regulations that are applicable are numerous, element specific and industry specific. E.g. NAICOM Rules, Cybersecurity Act, NDPR, CBN regulations, SEC Regulations etc.

Using the structure you have developed, you will need to go through the structure with a fine tooth comb to determine the regulatory risks involved. Non-compliance is always very expensive. It is important to determine points of potential liability such as the need for regulatory approvals, licenses and even administrative structures/safeguards.

Policies and Agreements

After understanding the structure, looking at applicable regulations and identifying risks, policies and agreements are a good way to address concerns identified in the risk assessment stage and also limit liability. Key policies and agreements needed are articulated below:

Intellectual Property

Another major legal issue is figuring out where intellectual property resides for all major components of the product such as concept notes, design, pictures, marketing materials e.t.c. Different IP rights apply to different elements of the Product. Here are some of them:

Fig 3: Intellectual property rights attached to major product elements

It is also important to note that some features or aspects of the product may be derived from previously developed intellectual property. For example: integrated APIs, open source software, pictures, design, fonts, text, e.t.c. For derived IP Works, it is important to obtain and adhere to the intellectual property license agreements, terms of use or assignment terms required.

Your approach to product intellectual property should be to:

• Identify all intellectual property rights in the structure and conception of the product.
• Determine ownership in these intellectual properties identified
• Register the developed intellectual property rights where registration is required or obtain necessary licenses for derived IP.
• Ensure there is a clear articulation of ownership of intellectual property rights in software developer agreements or third-party service provider agreements.

Data Protection and Cybersecurity

Lastly, ensuring the product has a watertight data protection architecture is very vital. The potential of a very large user base and thus, the collection and processing of personal data places a huge responsibility of navigating data protection on product conveners.

The first step in approaching data protection would be identifying the data to be collected, stored, transmitted or deleted in the operation of the product. The identification and classification of data then determines the structures to be put in place for protecting and processing the data. Some of the mechanisms in place to ensure data protection and cybersecurity include:

• Identifying the lawful basis for processing data at every point
• Having a comprehensive privacy notice
• Data protection impact assessments to evaluate new forms of data processing
• Integrating data protection by design and data protection by default into product features
• Employing a data protection officer where necessary
• Have guidelines to govern engagements with third party vendors
• Constant trainings on cybersecurity
• Conducting yearly audits to ensure compliance with data protection regulations and international best practices.

In conclusion, these five key legal considerations provide a sturdy framework for lawyers navigating legal advisory work on a product, ensuring that the legal aspects are thoroughly addressed from conception. By carefully navigating these aspects, one can ensure that the product that is finally made available to end users has a solid legal framework.