The last thing we want is for Apple to be responsible to somehow vette that ALL content in all applications is licensed by the proper copyrightholders. They already try to do this. The truth is that Apple should NOT be restricting based on content, period. No store checks the trademarks and copyrights of all their goods before selling. If a copyrightholder comes a long and announces that there was violation, they do exactly the same thing, they pull the product.

I have enough problems with Apple’s restrictive policies based on content.

Yes. Apple’s agreement with developers explicitly states that developers are responsible for securing rights to all content that they display.

See, here’s the business plan:

1. Create and have Apple approve the App.
2. Make money–Profit!
3. When the rightsholders find out what you’re doing, Apple will pull the App and notify you.
4. Disappear.
5. Repeat.

Also, Apple keeps the money that they didn’t send you yet when they pull the App (and the 30% that they got from each sale). So you get money. Apple gets money. Rightsholders are left with nothing but a puff of smoke when they try to go after the company that made the App (since all you have to provide Apple with is an e-mail contact). Apple says, “We’re not responsible–we’re just the middleman!”