Apple didn't approve of the use of a private API in Pointy Heads Software's Knocking Live Video app, which allows iPhone users to stream live video to each other over 3G and Wi-Fi. After pleading to Steve Jobs to reconsider their verdict, Apple got back to developer Brian Meehan the next morning, promising that his request was being taken seriously.

Three hours later, with the order reportedly coming "directly from the top," the Knocking Live Video was available on the App Store, where you can download it for free now. Until Apple sticks a forward-facing camera on the iPhone, it's not ideal for video chat, but as Jesus pointed out in his rant yesterday, Apple's likely biding its time until it can smell the video chat competition.

Meehan's gone public with his story, telling Ars Technica that "Apple told me they are listening, and truly care about their developers and getting it right," giving hope to developers railing against them on the Apple Rejected Me hate-site, and hope for anyone wishing to use a private API in an app. With Apple loosening its grip in this instance, we could be seeing a lot more interesting apps launching soon. [Ars Technica]

I'd seen the "Look at the happy developers!" propaganda videos Apple produces, and I have to confess that I bought into them. Everyone just looks so happy and successful in Apple Land! But my feelings about iPhone app developers changed greatly over the past while: I went from being envious of the supposed overnight millionaires to realizing that perhaps some or even most may not be all that well off after all.

Newsweek interviewed a handful of those developers, some of whom were in fact featured in the videos I so attentively watched, and they're saying that the money's run out.

It certainly starts out nicely enough: A developer might make $45,000 in revenue in less than three months, some might even make several hundred thousand over similar periods of time. But perhaps the market for apps is maturing and as the number of competing programs increases, it's becoming much harder to develop and sell a runaway hit than in the past.

Of course, like any trend story, we have no idea if the subjects were chosen to enhance sensationalism, or if the majority of app developers really are suffering. Either way, the app buying market chooses the best apps, and developers should set their prices knowing their costs. In the end, developers thinking of quitting the day job to develop apps should beware of fairytales of App Store riches. [Newsweek]

Users of Android devices will be able to grab a special judging app from the Android Market to download, test, and rank entries. The top 20 programs in the following categories (200 in total) go into the second round:

• Education/Reference
• Games: Casual/Puzzle
• Games: Arcade/Action
• Social Networking
• Lifestyle
• Productivity/Tools
• Media
• Entertainment
• Travel
• Misc

In the second round (roughly October), Android users will make up 40% of the vote, with a Google-selected judging panel accounting for 60% of the score. Winners will be announced sometime in November, while $USD prizes will be distributed as follows:

For each of the 10 categories:

• 1st prize: $100,000
• 2nd prize: $50,000
• 3rd prize: $25,000

Overall (across all categories)
• 1st prize: $150,000 (meaning the overall winner will receive $250,000)
• 2nd prize: $50,000 (meaning the 2nd prize winner will receive up to $150,000)
• 3rd prize: $25,000 (meaning the 3rd prize winner will receive up to $125,000)

Full details at the Android Developers Blog. What are you waiting for? [Android]

There are even more possibilities. You can imagine apps taking crime rate statistics and mapping it out, showing users the safest places in the city to live—or even drive through. The more datasets there are (there are > 100 right now), the more possibilities there are for programs. So we're all for cities putting their data online for users to freely access. [Techcrunch]

The basic model resembles Apple's app store except that rather than requiring users to set up accounts or enter credit card information, the Vcast app store will use Verizon's existing billing system and slap the charges onto users' monthly bills.

Verizon says that it hopes to have an application approval turn around time of under 14 days, but what I'd like to know is whether there'll be a Google Voice app among the bunch or if it'll be rejected. [CNET]

Mojo is of the utmost importance to Palm: Without a huge and vibrant developer scene churning out tons of apps, the Pre might not excel as a platform enough to challenge the iPhone. The SDK that leaked is a beta, and some are warning potential developers to treat this version as a guide rather than a final release. Now the fun really begins—it's time to see what the Pre (and Pre community) can do. [PreInsiders, Thanks Pat!]

You can watch it here. Facebook's videos aren't embeddable, or I wouldn't make you click an extra time. The more I think about it, the more this video makes me angry. What the fuck are they doing for almost five minutes? How about using that time to get Windows Mobile 6.5 out the door instead of making these horrible videos? [Facebook]

According to Kotaku, the five devs are Imangi, The Blimp Pilots, Snappy Touch, Streaming Colour Studios, and Veiled Games.

"This is our way of combining resources to become a bigger player, while retaining our independence and without any of the drawbacks and strings attached that come from working with a publisher," said Keith Shepherd, the CEO of Imangi Studios, in comments made to Kotaku.

The five developers will also direct users who buy one of their seal-stamped games to other games within the network that also bear the seal. Eventually, other developers may be invited in, although selection criteria were not disclosed. [App Treasures via Kotaku]

30 something year old family man with bills to pay owed 1,000's (soon to be 10's of thousands if March is missed also) here.

I'm with you. I am a 30 year old work-from-home Dad of 2 kids. I'm owed probably about $10k at this point ($2k from past months, $8k from the month with no payments or financial reports yet).

This is a BIG deal for me and my family.

Over $10,000 here. Family, kids, mortgage etc. Mails unanswered etc. In dispair. No where to go. They don't reply to emails and there is no number. Can't do anything physically because I'm in the European Union.

Apple still owes me more than $7,500 since September 2008 for US and World regions. I supplied them with a new SWIFT code and a intermediary bank they could use last month, but still nothing. Sent them tons of emails but I never got to know what is really wrong/faulty so I just tried to give them another SWIFT code that DNB (Biggest bank in Norway) uses. All other region payments have been OK.

Apple owes me near $2000 since Feb. Zero payment received. Zero email replies.

Apple acts as a distribution channel for all iPhone OS-based software through their iTunes App Store. They get the micro-payments from the customers, getting a 30% share of each sale. Every month they add the totals and pay developers the 70% in a single money transfer, which—according to the developer contract—should arrive within 45 days of the end of the month.

As you can see, this has not been the case in the quotes above and apparently many others. Months have passed in many instances, and there's still no sign of the money. In fact, according to developers, the situation is so bad that some are threatening to sue Apple for breach of contract.

If you are a developer and have some horror—or good—stories to share about this, you know where we are. [iphonedevsdk forums and iphonedevsdk forums via TechCrunch]

Here's a piece of what Ars is quoting from the new agreement:

You will not, through use of the Apple Software, services or otherwise, create any Application or other program that would disable, hack or otherwise interfere with the Security Solution, or any security, digital signing, digital rights management, verification or authentication mechanisms implemented in or by the iPhone operating system software, iPod touch operating system software, this Apple Software, any services or other Apple software or technology, or enable others to do so...

It also says that anyone using the SDK to develop software can then only get distribution through the App Store, and at Apple's sole discretion. As Ars points out, it's not going to dry up jailbreakers, but it will make those gray area developers a little more skeered of swerving from the path. [Ars Technica]

No idea what bugs it fixes or if it improves speed and stability at all, but it's new, and you like new things. [iPhone via Gear Live]

Update: A developer reader tells us that it does feel much snappier, especially in the scrolling area.

He also says that there's a new Store area in the Settings, which is kinda mysterious because there's nothing there.

Update 2: Push notifications now work, and developers can start making apps with it. AND, Skype still works over 3G.

Through iPhoneAppQuotes.com, you pitch your idea and receive three free quotes from different developers who'd be willing to complete the project. We have no idea whether or not this is a reputable service that's worth your time and/or money, but the idea is certainly pretty enticing. If anyone seriously pitches an app, let us know what kind of price quotes you get back. [iPhone App Quotes via Ubergizmo]

Craig Hockenberry of Iconfactory, developers of Frenzic and Twitterific, started things off with a post lamenting the difficulties of rising above the iPhone app's endless sea of 99-cent mediocrity (a sea I have spent plenty of often painful time wading through for our Week in iPhone Apps column). In his post, he worries about being damned to endlessly producing 99-cent so-called "ringtone" apps rather than well-designed and innovative apps that take more resources to develop.

Hockenberry's "Dear Steve" states that an iPhone dev's life would be a lot easier if they could accurately track who exactly is downloading their apps (and which ads/links they clicked on to get to the store), and the ability to offer free demo version of apps that expire after a given time, prompting people to buy the full app.

After setting off quite a ruckus of folks accusing Hockenberry of groundless complaining, the folks at Appcubby came to the rescue with a full monty on their financial records, showing, down to the dollar, what goes into keeping food on the table for an iPhone app developer (wherein we learned just how much Jason's post on Gas Cubby spurred sales). The Cubby folks backed up the call for free demos and more ad-tracking capabilities as two things that would greatly help the situation.

Both posts are really interesting reads if you're into knowing how the delicious iPhone app sausage gets made. [Furbo Blog, App Cubby Blog]

Nintendo's response to everything has been that “All DS titles are compatible with Dsi” (except those that utilize the GBA slot—like Guitar Hero). But if games that haven't been released are already running into trouble, does that mean that several games already out there won't play nice on the company's next handheld? [Pocket Gamer via Kotaku]

To our developers

We have decided to drop the non-disclosure agreement (NDA) for released iPhone software.

We put the NDA in place because the iPhone OS includes many Apple inventions and innovations that we would like to protect, so that others don’t steal our work. It has happened before. While we have filed for hundreds of patents on iPhone technology, the NDA added yet another level of protection. We put it in place as one more way to help protect the iPhone from being ripped off by others.

However, the NDA has created too much of a burden on developers, authors and others interested in helping further the iPhone’s success, so we are dropping it for released software. Developers will receive a new agreement without an NDA covering released software within a week or so. Please note that unreleased software and features will remain under NDA until they are released.

Thanks to everyone who provided us constructive feedback on this matter.

Maybe the move was prompted by a certain little green robot's openness but, most likely, the reason has been the iPhone developer outcry.

Still, they haven't dropped their stupid gag order about iPhone App store's rejections, but who cares? [ADC via MacRumors]

Namely, what's shown in the image above. No, that's not me. It's some other Jason Chen that's taken my name and is using it to whore out the Android project. The only whoring I do is for my own book, thank you very much. I thought I was the only Chen in the world. :'( [Android Developers]