What is the license for an App Store App? In-App Purchase? Re-downloads?

Question

Hello All!
I purchased an iPhone 3G when they initially came out. My wife bought one (and uses my iTunes account on it exclusively) about six months later. I couldn't find and understand what the licensing agreement was about installing the same app on multiple devices. I wanted to be legal and do it right, but I knew I could download the same app on both phones (with a single purchase) since they both use the same iTunes account.
I asked the iTunes store support via e-mail for a clarification of the policy since I couldn't find or understand the legal version of application licensing through the iTunes store on the Apple website. I got the run-around and no simple yes or no answer after several back and forth replies. So, I posted a message here and received a number of replies telling me that it was legal (not just possible, but LEGAL according to the EULA and the iTunes Store's licensing agreement -- which does vary considerably with each type of product sold). I proceeded accordingly since then based on that information, since I couldn't get a simple yes or no answer from iTunes Support about the really simple question I asked them. I was just attacked about my total ignorance on a different website by a user when I questioned the change in In-App purchase policies. I know Apple has seen a spike in these purchases, but it's been driven (quite literally) by the GPS app subscriptions, not true in-app product purchases.
Up until now, I've avoided in-app purchaes because I just didn't like the fact that if it was lost due to some failure in hardware (or backups not working correctly, as that was a real problem with the iTunes software for some time for me), I had no ability to re-download it again, like the app itself. Now, with the policy change allowing for developers to avoid having to make a Lite version and make buying the full version an in-app purchase, this will make it unavoidable for certain applications if I want the full version.
*So, I've got several questions, and would appreciate an Apple employee response, in addition to others who really know (and aren't just doing what is possible). Is it legal for a purchased app to be installed on multiple devices concurrently? If that is legal, can an in-app purchase be installed on multiple devices concurrently (and is possible to make this download without additional charges)? And finally, can in-app purchaes be downloaded again if there is a hardware failure (and no valid backup to restore from) or do I have to buy it all over? If that last question has an answer of no, it's going to help me determine who I buy from.*
I'm not a fan of these in-app purchases since they weren't re-downloadable when problems occurred (as least that's what I was told), so as I said, I've avoided them. Obviously, I'm going to have to change that policy, but I want to know that my purchases will be safe. I like seeing the app on my computer's hard drive as a real file (and in iTunes as a listed application).
I'd appreciate someone clearing this up for me as I took the first time I asked as a basis for my decisions since then and now I'm being told that was all wrong. I wish there was a simple link, in non-legal terminology, that would explain the licensing rights for each type of product being sold in the iTunes store on the Apple website itself. If there is such a place, iTunes Support should have told me about that when I contacted them in the first place when my wife first got her phone (but instead, I had to get answers here because it seemed like Apple's support is just automated computers guessing at appropriate responses to questions). It was such a simple question and I couldn't get an answer, even after 2 or 3 back and forth replies. It was rediculous!
Would someone please clear this up for me?
Thanks!
Jim

Answer 1

@wjosten:
I really appreciate your input, but I'd like an Apple employee response to rest my hat on (like JasonL, who has responded to my posts previously -- his user account is marked with an Apple icon and says Apple Employee on it). I know it's not official, but after getting attacked on another website for this question, I knew I had to head here. I couldn't get straight answer from Apple's iTunes Store Support, so I wanted to have someone attached to Apple sticking their neck out.
*A few questions for you, though, with the in-app purchases of both subsciptions (like with the GPS apps) and product additions, since I've never used them before because of fear of losing them. When you make an in-app purchase, and then I want to put it on my wife's phone, does it come up the same box saying it's free to download because you've already purchased it? How does this work with subscriptions, which would have to update the developer's servers somehow (to know how long to provide a service for)? I have MotionX GPS and need a subscription for esentially the app to work fully. I'm still in the 30-day free window, but it's not installed on my wife's phone. If I want to continue the service, will I be able to buy one subscription and just re-download it on her phone (and it would give her phone the same expiration date for her service from them)? Would it just update MotionX's system when the initial purchase is made and any additional downloads would be ignored (as long as they were made under my iTunes account)? This is particularly confusing because MotionX says you can stack subscriptions, so I would think each download would have to be paid for in order to do this. See what I mean?*
*I know about music being non-redownloadable, but also thought the same was true for all media except for apps (movies, TV shows, etc.). Is that also not true? It's not a big issue for me, since I don't get most of my media from iTunes, but I'd like to know the right answers when I do.*
Thanks for helping someone who doesn't understand Apple's SLA's or how to find them online on their system. Yes, I'm a PC, but am considering a Mac for the near future, but I've never had a lot of luck finding information in Apple's support knowledgebase at all. Microsoft's KB works better, but it just may be I'm used to it since I've used it for almost 20 years. I've only been using Apple's for going on 15 months.
Really, if you can clear up these other questions, I'd be happy to call it solved. I appreciate it a bunch!
Take care!
Jim