There is a mixup of things here.
Firstly, contrary to disinformation spread in all pilot forums, there is no legal requirement to carry any kind of printed or paper flight planning / map data, in the UK, in the USA, or anywhere else in Europe that I know of. There are such rules in some places but not in the main parts of the world we are talking about here. So electronic data is 100% legal. Which is not to say that flying without paper is wise (personally I print off chart enroute sections, and plates for dest+alternate) but it's not a legal requirement.
Second, no national CAA specifies, for private flights, how one should navigate. They may specify equipment to be carried, but that is a whole different thing.
Third, copyright (as in alleged breach of copyright of nav data) doesn't come into it as far as the legality of a flight is concerned. If PocketFMS start sending out maps which are ripped off from some copyright source (and practically everything map-wise in Europe is copyright) then they might get into trouble. One way to get around this is to get the users themselves to "procure" the said data, by downloading it from various websites, e.g. Eurocontrol. In fact the latter is now the place of choice for getting all the navaid etc data, and there are ways (which I won't give here) through which one can get all the CAS coordinates etc as well. So I think PFMS will be OK - they just need to stick to public domain maps (like the U.S. ONC stuff) and avoid blatent ripoffs from say Memory Map - but e.g. enabling users to run MM charts, while upsetting MM, would not land PFMS in any trouble.
IMHO, user updating of data will never work. It might be OK for the lat/long of Stapleford, but it won't work in places where GA is thin or nonexistent, which is basically most of Europe. They need to move to a chargeable model, where somebody gets the (unenviable) job of procuring the AIPs and maintaining the database. And also acting on email reports of errors; something that Jepp obviously don't do.
Flymap is an interesting product. I just wish they came out with a WinXP package, which can run on any laptop/tablet.