Now that developers are aware that each developer is the one selling to the end user and its not Android Market selling to the consumer, developers need to seek International Tax Experts advise and structure accordingly.
This group Android Developers International & Tax Consultation to take action has been created.
Early last month, just a few days before our intended release of paid applications on SlideME, someone raised the issue on the Android lists about whether our apps were protected from copying. I had naively assumed that Google protected the installed application space; and after a quick check found out that this was not the case. A Google engineer also confirmed this on the lists. You could pull off any installed app using the Android developer tools.
It took less than 12 hours for someone to find a hack for removing "protected" applications from the phone. It's amazingly easy.
A few days ago, Android Market launched but not open to the international developers that are looking for ways to Publish their applications channeled via agents. Such agents could help since they will be in a jurisdiction where Google allows stocking onto their market.