Google workaround enables paid apps to be installed on Android Wear powered smartwatches
Google is telling these code jockeys, that they have to change the name of the directory in which the wearable APK is placed. A future update to the Android SDK build tools will make it so this manual update isn't necessary. The bottom line is that developers need to place the wearable APK in the res/raw directory instead of the assets/ directory.
If you are a developer, it would behoove you to take a minute of your time to check out the sourcelink and make the required changes. Otherwise, you're basically not going to see any business from Android Wear users.
source: AndroidDevelopers via AndroidCentral