Apple’s New Goodies: The Fine Print

Now that we’ve had time to absorb Apple’s WWDC keynote, it’s time to look at the fine print. With iCloud, Apple has revised its iTunes Terms and Conditions page, which each of us must accept before using iCloud. Naturally, the document’s primary focus is to spell out what we can and cannot do. It also includes one piece of information that could concern parents worried about in-app purchases being made by their children. Device Limits Device limitations are nothing new in the Apple ecosystem. Since the very beginning, Apple has limited to five the number of computers that can share an Apple ID via iTunes. With iCloud, that limit hasn’t changed. Rather, now we have other limits. For example, the Association of Associated Devices is subject to the following terms:

1. You may auto-download iTunes Eligible Content or download previously-purchased iTunes Eligible Content from an Account on up to 10 Associated Devices, provided no more than 5 are iTunes-authorized computers.
2. An Associated Device can be associated with only one Account at any given time.
3. You may switch an Associated Device to a different Account only once every 90 days.
4. You may download previously-purchased free content onto an unlimited number of devices while it is free on the iTunes Service, but on no more than 5 iTunes-authorized computers.

Naturally, point No. 3 is the most significant here. This limitation was reported on yesterday and clarified here by Apple. Two additional points worth mentioning are the limitations placed on the iTunes iBookstore and how iDevices treat passwords. The iTunes iBookstore Amazon allows eBooks to be read on a PC or Mac through an application. Unfortunately, the same cannot be said for Apple. According to the iBookstore product usage rules:

1. You shall be authorized to use the iBookstore Products only for personal, noncommercial use.
2. You shall be able to store iBookstore Products from up to five different Accounts at a time on certain iOS-based devices, such as an iPad, iPod touch, or iPhone.
3. You shall be able to store iBookstore Products on five iTunes-authorized devices at any time.
4. The delivery of iBookstore Products does not transfer to you any promotional use rights in the iBookstore Products or any rights to burn the iBookstore Products to disc.

Password Finally, we turn to the issue of passwords. In a move that might cause it problems later, Apple appears to have increased the amount of time between account reauthorizations for in-app purchases. Its latest document states:

In-App Purchases must be authenticated separately from authentication to purchase and download App Store Products by entering your password when prompted, but once you have authenticated In-App Purchases, you will be able to make additional In-App Purchases for fifteen minutes without re-entering your password. You can turn off the ability to make In-App Purchases on your iOS Device by following the steps outlined at http://support.apple.com/kb/HT4213.

Earlier this year, Apple faced unhappy parents who received their iTunes bills and recognized their children were making in-app purchases without their approval (remember the Smurf game?). Because of this, Apple changed course and began requiring a password entry for all in-app purchases, regardless of the last time a purchase was made by a user. This began with iOS 4.3. As Gigaom stated at the time:

In an apparent attempt to quell concerns from parents, regulators and legislators, Apple has moved to require password entry on every in-app purchase, closing a 15-minute grace period that some children used to inadvertently rack up pricey charges of virtual goods. The latest update to its iOS software 4.3 will now include the requirement, which Apple hopes will add further protections against unwanted purchases.

At least in the company's iTunes Terms and Conditions page the 15-minute limit is once again in place. Accordingly, parents must now set the limits themselves within the Settings app in iOS. Perhaps the limits established with iOS 4.3 remain and Apple has simply forgotten to make the same language change within its iTunes document. We're still reviewing the new iTunes Terms and Conditions. If we find anything else important to our readers, we will certainly let you know. What do you think? Leave your comments below.

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