In my conversations with Android developers, I often hear that you’d like better protection against unauthorized use of your applications. So today, I’m pleased to announce the release of a licensing service for applications in Android Market.
This simple and free service provides a secure mechanism to manage access to all Android Market paid applications targeting Android 1.5 or higher. At run time, with the inclusion of a set of libraries provided by us, your application can query the Android Market licensing server to determine the license status of your users. It returns information on whether your users are authorized to use the app based on stored sales records.
Looks like this will be standard at some point. I guess they are leaving it up to the developers as to what they will do with the info.