The New York Times iPhone and iPad app has just received an update that allows users to subscribe via in-app purchase. Changes were made to many in-app subscription services after Apple changed the guidelines. The New York Times is one of many news publications that were affected by the changes. The update will now allow users to choose from three new in-app purchase schemes -

• $15 - iPhone + web content
• $20 - iPad + web content
• $35 - All access (iPhone, iPad, and web)

These fees will be on a monthly basis and will recur as long as you're subscribed. This is similar to how other online publications have recently dealt with many of Apple's subscription policy changes. Anyone planning on buying into the new subscription model NYT is offering?

[Mac Stories]

iPhone, iPod touch, and iPad users are complaining that Sega's Massively Multiplayer Online Game, Kingdom Conquest is allegedly "stealing" money from their iTunes accounts. Even though the game itself is free, the game has many in app purchases, ranging from $0.99 - $43.99, which since mid-May, users claim these purchases are being made without their consent. If these complaints are to be believed, it seems that even people that didn't download the original app are being effected as well.

Sega has responded to complaints in their forum:

"We are currently investigating this claim as well as some others, but since we have no access to any customers' iTunes account information or transaction histories we highly recommend contacting Apple directly. "

"Allow me to state very clearly that Sega and 'Kingdom Conquest' are not acting maliciously in any way,"

Apple haven't responded yet, however some customers have reported that Apple have offered refunds.

Have you been effected by this? Let us know, and either way remember it's always a good policy to change your passwords regularly and check your download history.

Developer James Thomson reported on Twitter this morning that he's been threatened with patent infringement for his use of in-app purchases in PCalc Lite.

Just got hit by very worrying threat of patent infringement lawsuit for using in-app purchase in PCalc Lite. Legal docs arrived via fedex.

No idea what to do... They seem to be effectively claiming the rights to in-app purchase, but going after me, not Apple.

Talking to Apple now, may go quiet on this for the short term until I know what's happening.

So, have talked to Apple contact - currently scanning everything in to send. Sorry folks, no PCalc 2.4 happening today.

To be clear, I haven't been sued yet - I've been told that I am infringing their patent, they want me to license it, and I have 21 days.

Thomson isn't the lone target of these threats, his UK timezone might just have gotten them to him sooner. Already Patrick McCarron has reported the same thing.

Anyone else get a patent threat via FedEx for in-app purchase use in their iOS app? So far @jamesthomson and I got hit.

I can now check off being threatened by a patent troll off my bucket list.

There are likely other developers who simply haven't chosen to come forward yet. If you've gotten a FedEx patent threat today, let us know.

UPDATE: The company claiming infringement is Lodsys and they seem to be targeting iOS apps that have free/lite versions and full versions, and link to or allow updating within app from free/lite to full. Rob Gloess of Computer LogicX was hit yesterday [MacRumors]

Our app, Mix & Mash, has the common model of a limited free, lite, version and a full version that contains all the features. We were told that the button that users click on to upgrade the app, or rather link to the full version on the app store was in breach of US patent no 7222078, we couldn't believe it, the upgrade button!?!

UPDATE 2: Apparently, according to the iOS SDK license, developers are not allowed to settle these kinds of lawsuits. [TidBITS]

In no event may You enter into any settlement or like agreement with a third party that affects Apple’s rights or binds Apple in any way, without the prior written consent of Apple.

[@jamestomson, @McCarron]

iOS 4.3 means you no longer have to worry that your little ones might spend away your fortune on Smurfberries and other in-app purchased goodies. According to the Washington Post, Apple's latest iPhone, iPod touch and iPad software updates requires a password to be entered each and every time an in-app purchase is made. Under the old system iOS would remember your password for a short period of time meaning your children (or significant other!) could tap away at potentially costly in-app purchases with impunity. No longer.

However the new system doesn't help if the young hacker in your house has guessed or been given your iTunes password. So make sure you keep it secure and keep it strong (no using password as the password!)

For more see our complete iOS 4.3 walkthrough.

Are you relieved by this change? Will the FTC now call off their investigation? Or do you think Apple needs to do more?

[Washington Post]

One of the many, many "great unknowns" of Apple's iPhone App Store is how the top-grossing list is calculated, specifically whether or not it factors in revenue from in-app purchases. While we could theoretically wait and see if, now that they too can use in-app purchase, a free app makes its way up the list, the folks at Freeverse wanted an answer now. And they think they've found it:

Top Grossing Freeverse Apps are Skee-Ball (#17), Flick Fishing (#97), and Top Gun. Now, interestingly, the Top Paid Apps Chart lists Top Gun as #60 and Flick Fishing as #72. How does this happen? The games are priced the same...but Flick Fishing features DLC. This leads us to conclude that the Top Grossing Apps list seems to include In-App Purchases in its calculations.

What if anything does this mean for developers? Will they be able to land on the Top Free and Top Grossing lists at the same time now? And so what if they do?

Interesting times...

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Apple has just sent out a letter to developers introducing in-app purchasing for free apps.

UPDATE: Developers Erica Sadun on TUAW, and Marco Arment delve deeper into the subject, as does Techcrunch (twice).

ORIGINAL: Here's what Apple had to say:

In App Purchase is being rapidly adopted by developers in their paid apps. Now you can use In App Purchase in your free apps to sell content, subscriptions, and digital services.

You can also simplify your development by creating a single version of your app that uses In App Purchase to unlock additional functionality, eliminating the need to create Lite versions of your app. Using In App Purchase in your app can also help combat some of the problems of software piracy by allowing you to verify In App Purchases.

Visit the App Store Resource Center for more details about how you can add In App Purchases to your free apps.

So in one email, Apple ends the clutter of Lite apps, provides a real possibility for demoware (a developer can provide 1 level of a game, for example, for free, and 10 more via in-app purchase), and offers developers the carrot of anti-piracy measures at the same time.

Previously, Apple was resolute about "free apps stay free" so as to avoid user confusion. What changed their mind, all of the above? And will in-app purchases in free apps be extra-carefully marked to avoid just such confusion?

[Thanks everyone who sent this in!]

Boxcar [$2.99 + In-App Purchases - iTunes link], a push-enabler for iPhone and iPod touch originally launched with support for a couple of Twitter clients. Then it added a bunch more. As several Twitter clients now offer support for push themselves, what's Boxcar to do for a 2.0 encore? Add Facebook and Email push, of course, as well as Twitter Search and Twitter Trends.

Okay, sure, some major Twitter clients like Tweetie and Twitterrific still haven't added push support, so if they're your go-to apps, Boxcar may still be a go-to middleapp. Likewise, while Google supports Gmail now via GoogleSync, Exchange users can't hand over their only ActiveSync slot, so email push-enablers still have their place. Lastly -- and it's a big lastly, while Facebook 3.0 for iPhone just launched, it did so without push support, and so if you don't want to wait for 3.1 to get your push on, well, here's your middleapp for that as well.

But... it comes with a price. The $2.99 app price comes with one service built in. If you want to add another, like Facebook, you need to make an additional $0.99 in-app purchase. Email, that's another $0.99. Twitter Trends and Twitter Search likewise. And since you can have multiple Twitter, Email, Twitter Search, etc. set up, you can go from that base $2.99 to $4.99, even $9.99 or more. Basically, you pay for what's valuable to you. If you're working customer service and being push-alerted when your company (or your competitor!) and the word "problem" hits Twitter, $0.99 is a steal. If you don't care about trends or searches, or Facebook for that matter, you get a cheaper entry price for the app.

So, whether this particular app is worth it to you, and whether or not the in-app purchase upgrades are worth it to you, we're liking options and being able to choose -- and pay for -- only what we find of value.

So, if you need push now and you decide to try Boxcar 2.0 out, let us know how it works for you, and what you think of the pricing model!

More screen shots after the break...

TiPb had the opportunity to test drive Gokivo Navigator ($0.99 + In-App Purchases - iTunes link) over the last couple of days. This is one of the first iPhone 3.0 specific apps in the App Store, so first off it was great to see turn-by-turn navigation working (even in Canada!), and second it was interesting to see how Apple handles in-app purchases.

Getting this going is a little bit of work. You start the app and type in a destination. I found Apple Canada in my contacts so hit that. Similar to the built in Maps app, Gokivo will show you your location on a map. Instead of Street View, however, you have a green GO button. Hit that and you're on your way to turn-by-turn.

If you don't already have a subscription, Gokivo activates the aforementioned in-app-purchase engine, and once you login with your iTunes ID and buy a month of service ($9.99 in the version we tested) the GO gets going.

It takes time to acquire a good GPS signal, and will advise you if there isn't one to be had. Once it locks on, however, you're in for a pretty smooth turn-by-turn experience. Arrows point your way and a synthesized female voice tells you when and where to turn and, and preps you for upcoming turns. We repeatedly went the wrong way, and were impressed with how quickly and accurately Gokivo recalculated and tried to get us back on track.

Note, Gokivo isn't free just for the app because Apple doesn't let developers do in-app purchases for free apps. Hence, $0.99 will likely be the foundation for what TiPb considers iPhone "scaleware". Whether the $9.99 monthly fee -- or other in-app-purchasing options -- suit your needs and budget you'll have to tell us.

Gallery after the break!