The odds are pretty good that if you’re a big consumer of mobile apps, the private information on your phone has been collected and sent somewhere without your knowledge.

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That’s a scary thought for consumers and a tantalizing one for attorneys in the small but growing arena of apps security. San Francisco-based Lookout says in its Apps Genome project report that 1 in 3 free iPhone apps and 3 in 10 free apps on Android access the location of the phone user. The report also says that 14% of iPhone apps extract personal information, as do 8% of Android apps.

Permission may be written into the user agreement, but is it prominent enough? And what assurances do apps makers give that the information will be both protected from hackers and not shared without the user’s permission?

We already have read horror stories about how corporations such as Monster, Second Life and Hell’s Pizza have had their customer databases hacked. While we may feel better that Apple vets its apps, Android apps come from an unrestricted market.

An iPhone has been breached, and so it’s a matter of time before snoopers find their way into the databases of legitimate apps makers and operators. The people who gave permission — and especially the people who did not — may have cause for action. How large could damages be? How well insured or solvent are some apps makers whose software contains flaws? And is there any third-party liability from companies that sell tools for building faulty apps?

Small, inconsequential breaches will likely not produce large damage claims, but could set import precedents for manufacturers, software developers, systems managers and data warehousers. Watch for the full report from Lookout and keep an eye on the dockets.

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We are definitely seeing an increase in criminal activity.

The question is arising in articles such as the ominously headlined article, “Dark Side Arises for Phone Apps”, in the Wall Street Journal on June 4. While Apple and Blackberry vet their apps, Google acknowledges that it checks for problems only when notified. An assistant director of the FBI’s cyber investigations division told the Journal, “We are definitely seeing an increase in criminal activity.”

Who is responsible for damages from a malicious app that steals private information? Who is liable when software turns a mobile phone into a spamming machine or distributor of malware?

The technology is so new that there are few cases and even fewer precedents. If an online store for apps vets them before putting them on the virtual shelf, is there an implied liability for not taking proper care? What about Google, which operates a bazaar for apps?

Roel Schouwenberg, a senior malware researcher at Kaspersky Lab Americas, says that marketers and others could be blamed for those problem. In an interview with MobileMarketingWatch, he said he expects Google Wave, iPhone and Android could sustain heavy cyber-attacks throughout 2010. The victims, whether they be individuals or businesses, will look for legal help in recovering from losses.

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The level of industry and government interest demonstrates how far mobile phone apps have made their way into the consumer market. Companies and software developers aren’t arguing over an unproven technology; mobile apps have generated rich rewards and now the battle is over who gets the money.

U.S. anti-trust regulators are looking into whether Apple is stifling competition by banning Flash from its mobile devices. The Associated Press reported on May 4 that two federal agencies are deciding which of them should lead the investigation.

Beyond the corporate rhetoric, there are implications for Apple. The company could be forced to open up its mobile OS to Flash and other developers. Federal agencies could also look at Apple’s iAd practices and take action there as well. Just as important, federal scrutiny could bolster the fortunes of Flash-friendly phone types such as Google, HTC and the like.

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Several suits relate to new touch-screen abilities we have come to know and love with the newest generation of smart phones.  To get a better look at the confusing web of lawsuits, take a look at the New York Times graphic.

It is unfortunate to see this mess, as intellectual property is supposed to foster enhancements in our society. But now we are seeing companies trying to prevent enhancements by patenting work so no one else may pursue it.  Even worse, some companies have only profit in mind and thus seek to reap financial rewards from the lawsuits rather than from applying the patents to products or services.

As the New York Times reports, Apple recently sued HTC, potentially affecting current and future HTC Android phone owners. It seems unlikely that a court would issue an injunction against HTC or Google in part because of secondary effects such as rendering millions of cell phones useless.

But that will not stop Apple, which has sued not only in U.S. District Court in Delaware, but also with the U.S. International Trade Commission. Apple wants the commission to prohibit further imports of HTC phones that Apple claims infringe on its patents. Apple may be targeting HTC before or perhaps even instead of Google because is HTC is a smaller, more vulnerable company that cannot afford protracted litigation. HTC could be easier to take down first or, at least, settle with Apple.

With so many pending cases, the future of patents in the mobile technology and cell phone industry is murky. We can hope that suits will be settled and the companies will go back to producing technology. That is how the patents should be used: to inspire innovative technology, not limit it.

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The New York Times reports that Facebook plans to unveil updates at next month’s F8, the Facebook developer conference.

When Facebook updated its privacy policy in November 2009, it included statements regarding adding locations to posts and its treatment of the service.  This exemplifies a new trend in social networking, the desire to use location awareness via GPS, which is also being applied by Twitter and Google Buzz.

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The previous week, Apple filed a lawsuit against HTC, claiming the Taiwan-based phone maker infringed on 20 patents related to the iPhone.

The lawsuit was filed concurrently with the U.S. International Trade Commission and in U.S. District Court in  Delaware.  For the ITC claim and the complaint in the Delaware action, click here.

Ostensibly, the fight is between proprietary software and services (Apple) and open systems (Google).   But the Times describes the battle as intensely personal, with CEOs Steve Jobs and Eric Schmidt engaged in nothing less than World War III.  Who will win?

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Analysts have said that mobile app stores in 2010 will experience more than 4.5 billion downloads, with about 80% of those being free to end users.  Games remain the most popular apps purchased.

As the industry grows, consumers will continue to experiment with downloads.  Apps for social networking, shopping, as well as productivity and utilities continue to grow and garner more money as smartphone mobile devices with Internet and app capabilities expand.

Gartner says that as the market becomes more saturated with cheaper smartphones, users will become less tech-savvy and more hesitant to pay for apps.  As a result, the firm thinks  that advertising sponsors will see growth.

By 2013, the company expects about 25% of revenues will come from paid-for apps and advertising-sponsored free apps as the industry will likely become more advertising and sponsorship based.

App developers will need to find not just the right revenue model, but the the right platforms.  The professionals at appslawblog can answer questions about how to get an app-based business off the ground. Contact them through this site.

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The company plans to add platforms like Google’s Android, Nokia, Symbian, and Palm.  Furthermore, the firm will introduce API (application programming interfaces) to bring  in content on the Web or in other databases.  And customers will be able to integrate their apps with online services such as Facebook, Twitter, and OpenTable.

One challenge involved in developing an app is determining the platform.  Computerworld reports that BuildAnApp ameliorates this dilemma with proprietary software that enables the app to be delivered on three of the most influential smartphone platforms.

BuildAnApp has 16 basic templates, including one titled “other” that allows for a wider range of page types selected from other templates.  Computerworld says “the company is also developing a ‘pro’ version of the service for skilled developers creating more sophisticated applications.”

BuildAnApp in all likelihood will not support superior development such as that from Rhomobile and Appcelerator, which support languages such as Ruby, JavaScript and HTML.

The company’s focus is to ease development for smaller businesses.  The user picks a template, chooses typical types of pages and populates the app with information.  Once finished, the developer can keep the app private by requiring a password.

Because the program is in beta, customers have a free 30-day trial, after which time they can pay $7.99 for a one-time content or app update or pay $14.99 per month to make unlimited updates.  Customers can take it one step further by paying $59.99 for unlimited updates for six months.  BuildAnApp will also submit the developed app to Apple’s App Store for $19.99, which includes resubmissions in the event that the app is rejected.

Computerworld mentioned an interesting analogy: “Analysts liken the emergence of a service such as BuildAnApp to the evolution of Web development from pure HTML coding to easy-to-use design services such as GeoCities and Blogger.”

A small business could use a mobile website but apps have advantages.  For instance, consumers can access and use the information even when out of range of their wireless networks; an app layout may not only look better than a mobile website, it may also be easier and more logical to use; and apps generally run faster because they operate locally.

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Call it crowdsourcing, online rating or real-time reporting. The Web allows for immediate, detailed consumer commentary on products and services.  That feedback has extended to cell phones and reached the airline-security experience through the “Survey on the Spot” app for the iPhone.

On the Spot Systems in Newton, Mass., has launched the TSA Airport Security Screening Survey that gives people who tub their carry-ons, take off their shoes and sometimes get wanded to rate their experiences. This is not a rogue app; the Transportation Security Administration wants to know how it is doing. Survey on the Spot also allows travelers to add photos and comments to help the TSA improve the national security system, says On the Spot Systems in a press release.

Photos of suspected terrorists? Rants? Don’t look for them on a Web site. On the Spot generates proprietary information for clients, most of which appear to be fast-food and casual dining chains, based on our informal search on the company’s Web site. The TSA app is geo-based; launch it and it figures out which airport you’re trying to traverse to your plane. The commercial clients use zip codes to locate their nearest restaurant or coffee shop.

Ratings in the public sector are relatively rare when compared to the private sector and independent sites that span across the Web. One wonders whether there might one day be a survey for rating the cop who pulls you over for speeding, the judge who hears your case, the attorney who represents you, and the court clerk who takes your fine payment.

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What’s the significance? One Wall Street analyst said that Google is now in a better position to take on Skype.

OK, but what about boosting Droid? The phone and Google operating Android system are Web friendly. If I am a college kid in Europe and I find a free, open Wi-Fi spot, wouldn’t I prefer to use that no-cost connection than dial home and pay overseas charges? And if I had an phone app for VOIP, wouldn’t I prefer to dial or text through a Droid phone than boot up the laptop and open videoconferencing software?

And if that is not how Droid works now, how long before it does?

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