MobileCrunch has reported that Apple has banned developer Khalid Shaikh from the App Store and removed all 800+ of his apps that were being sold in the App Store. Apple's "Notice of Termination" e-mail to Shaikh describes that third-party intellectual property complaints are the impetus behind the banning:
Pursuant to Section 3.2(d) of the iDP Agreement, you agreed that "to the best of Your knowledge and belief, Your Application and Licensed Application Information do not and will not violate, misappropriate, or infringe any Apple or third party copyrights, trademarks, rights of privacy and publicity, trade secrets, patents, or other proprietary or legal rights (e.g. musical composition or performance rights, video rights, photography or image rights, logo rights, third party data rights, etc. for content and materials that may be included in Your Application)." Apple has informed you of numerous third party intellectual property complaints concerning over 100 of your Applications and reminded you of your obligations to obtain the necessary rights prior to submission of your Applications. Nevertheless, we continue to receive the same or similar types of complaints regarding your Applications despite our repeated notices to you. The persistent nature of such complaints has led us to conclude that you are entering into the representations and warranties in the iDP Agreement in bad faith by misrepresenting that you have all the necessary rights for your submissions.
As the MobileCrunch article points out, a search at AppShopper.com shows 854 apps by Shaikh. The majority of Shaikh's apps seemed to be data on a specific subject simply pulled from the web without providing any other original or unique content. Most apps were priced at $4.99 and this banishment could represent lost sales of thousands of dollars per day. Shaikh reportedly has admitted that the goal was not to produce valuable apps but to focus on monetization instead. All of Shaikh's apps have already been removed from the App Store and can no longer be purchased.
The App Store policies and approval process have been under quite a bit of fire lately, most notably with the rejection of the official Google Voice app, as well as the removal of 3rd-party Google Voice apps from the App Store in recent weeks. Apple has been tight-lipped with the public about such rejections though some affected developers have publicized their communications with Apple and spoken openly of their opinions of App Store practices.