Apple praises then pulls iPad app

Two graduate students from Stanford University have been dealt a bitter sweet blow after their app was praised by Steve Jobs but then pulled from the Apple store an hour later.

Steve Jobs described Akshay Kothari and Ankit Gupta  as “one of the most promising developers for the iPad” in a keynote speech at the Worldwide Developers Conference in San Francisco after seeing the pairs Pulse News Reader.

However, hours later the app was taken off Apple’s app store after the company received a written notice from the New York Times Company, which claimed that it infringed The New York Times Company’s rights as it displayed content from the paper.  A week before the NYT had in fact blogged about the app describing it as “a stylish and easy-to-use news aggregator.”

When people try to download the app, which was downloaded 35,000 times at a $4 price tag, a notice on iTunes reads: “Your request could not be completed. The item you’ve requested is not currently available in the U.S. store.”

The university graduates have said they will now take steps to remove Times material out of the feeds in a bid to get the news reader up and running again.