http://goo.gl/sEk5

Google's recently implemented anti-piracy system for developers has
proven to be largely ineffective, white hat hacker Justin Case
discovered today. Despite supposedly giving tighter reins over apps,
Android License Verification Library (ALVL) has been cracked quickly
by making a simple code patch that tricks Android into believing an
app has a valid license to run on the system. In a demo to Android
Police, case noted the approach doesn't require root access to the OS
and could be automated to use a script to patch apps for inexperienced
users.

Spokespeople from Google haven't commented on the findings.

The company's official Licensing Service is believed to be more
effective, but the discovery potentially jeopardizes Android's app
market by trivializing piracy for anyone hoping to monitor piracy
themselves. A lack of security could sabotage hopes to increase the
number of commercial-grade Android apps, which has already been an
issue as most Android apps are free and often made by small or
hobbyist developers rather than veterans.

Piracy is an issue on the iPhone as well, but it requires jailbreaking
the phone to run apps without a signature approval from Apple itself.
The App Store is currently the most successful portal and has both
more apps than Android market, at 225,000 versus 100,000 or less, and
well as more paid, profesionally-made titles.




Read more: 
http://www.electronista.com/articles/10/08/23/android.anti.pirate.method.seen.hurting.app.market/#ixzz0xThGRcfs

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