Two weeks ago, a minor update to Layers hit the App Store. The update included several important bug fixes and a few features, but one of the most major changes was the addition of a piracy tracking system. Each time the app is used on a jailbroken device, it phones home with a few (anonymized) metrics so that I can track the spread of pirated copies. Software on the Layers server gathers the data and prints out some cool statistics.

Technically cool, that is. Not really “cool” at all. I’ve sold around 1,500 copies of Layers this week and in the same 7 day period, more than 1,780 copies have been pirated. It’s flattering, to some extent; people obviously enjoy the app. However, it’s also evidence to a much larger problem that I feel Apple continues to overlook. The DRM used in iPhone apps hasn’t been changed in ages, and an app on a jailbroken device can be automatically cracked using another iPhone app in a matter of seconds. No command line tools. No hand-editing files. You double click the app’s icon and it cracks it. Done.

For “expensive” apps like Layers, piracy is an especially significant problem. The latest version of Layers runs about 22,000 lines of code, and my community and target market are small. Everyone needs to chip in so I can recoup the cost of development and rationalize extra time spent improving the app. The App Store’s layout and “Top 100″ formatting encourage 99¢ apps with limited utility, so it’s difficult to market a $4.99 drawing app to begin with. (I’ve been lucky enough to be a Staff Favorite on the App Store) Piracy rates above 100% really don’t help.

So what do you do? I feel it’s absolutely necessary to weed out the pirates. I wouldn’t mind providing illegitimate users with a time-limited or feature-limited version of the app. The problem is, current methods of screening for pirated copies are binary-dependent and patchable. In about a week, Layers will start displaying notices to pirates asking them to upgrade their “demo” copies of the app to a full version or “buy me a beer.” I hope that a few people will appreciate the app enough after using the pirated copy to consider paying. Even a 5% pirated-to-paid conversion rate would be an extra 15 sales a day.

In the future, I’d like to see Apple implement a secure model for confirming that users are licensed to use an app. A secure receipts model is built in to the In-App Purchase system, and I don’t see why it wouldn’t work for the app as a whole. The app would establish a secure connection to an iTunes server, exchange product identifiers and account details, and verify that a product had in fact been purchased. I don’t think Apple will implement anything in the near future, because it would require admitting that piracy was, in fact, an issue. We can dream, though.

A few other developers I’ve talked to have suggested creating a repository of device identifiers that have been nabbed during phone-home routines. It seems like a good idea, but I understand there’s some hesitation to start calling people pirates left and right. Apps would need to pre-emptively contact the repository, and a simple change to the UNIX hosts file could break the system.

So for now, It looks like I’ll be dreaming of an extra 1,700 sales a week.