It’s like how plugins conflict with each other. Android Wear is quite a new product by Google. This is over a year since other independent OEMs like Sony and Samsung rolled out smartwatches like the Galaxy Gear and the Gear 2. Google has with partners Samsung and LG started selling Android Wear in various markets, and as with most things Google, particularly on the Android front, interest is quite high.
Smartwatches have mainly run with free apps with quite a few paid ones, with Android wear there has been some conversion, now on Play Store as opposed to being exclusive on Samsung Apps Store. Now Google has been encrypting paid apps so that they identify solely with the device installing the app.
This is where the complication comes about, as reported by Android Police. The installation process for the wearables is within the parent smartphone, with no way to browse and install apps from within the smart watch. Installation process is via Bluetooth, meaning the smart watch is a second device and thus the encrypted app won’t install.
This bug is running 3 days now since discovery and there has been no acknowledgement or solution from Google who develop the wearables platform currently working on the new babies.