Encryption issues have been a bane for Android developers attempting to sync paid apps with smartwatches. Without the proper Documentation in place, Google is still playing catch up.
Android wearable apps are as of now downloaded and locally stored on an Android phone. From here they are transmitted via bluetooth to the smartwatch. According to Android Police, paid apps haven’t been opening due the key code incorrectly remaining encrypted, causing the app to not install or open at all.
Google’s solution recommends that developers automate manually placing Android Wear APK in the “res/raw” directory instead of the “assets” directory to avoid encryption as the assets directory becomes locked. This is a temporary fix; many await more updates from Google in the near future to address documentation and bug issues with wearable devices.