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ARTICLE · 11 JULY 2016

App Developer Prevails In Class Action Lawsuit Challenging Shift To New Business Model

Morrison Foerster
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If you make available a service through a free app, and you subsequently decide to migrate users of that app to a paid subscription model, that shouldn't create any problems, right?

United StatesMedia, Telecoms, IT, Entertainment

If you make available a service through a free app, and you subsequently decide to migrate users of that app to a paid subscription model, that shouldn't create any problems, right?

Well, app developer LogMeIn did just that, and became the target of a class action lawsuit filed in the Eastern District of California. Although the claims against LogMeIn were recently dismissed, the case, Handy v. LogMeIn, Inc., highlights the potential legal risks in seeking to transition app customers from a "no charge" (or a "one-time only charge") business model to another business model, especially where the new business model will require those customers to pay ongoing subscriptions fees.

LogMeIn's Products

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