Apple Loses Copyright Claims in a Lawsuit Against a Florida Based Startup

IPhone maker Apple Inc. (AAPL) lost a copyright infringement case against a Florida based startup Corellium LLC after a federal Judge in Florida dismissed the Apple’s claim. The startup has software which helps security researchers to find security flaws in Apple products.

Apple was accusing Corellium of copying its iOS operating system to create a ‘virtual’ iOS operated on devices with an aim of running unauthorized copies on non-Apple devices.

According to U.S District Judge Rodney Smith who ruled in favor Corellium, the software of the startup which emulates the iOS operating system that runs on iPads and iPhones amounts to fair use because it’s transformative and helps developers to find vulnerabilities in Apple devices.

The Judge ruled that Corellium adds something new to iOS by allowing users to see and stop processes, initiate other processes and take live snapshots.

Corellium’s profit motivation does not undermine its fair use defense, particularly considering the public benefit of the product,” read the ruling.

Apple’s claim that Corellium performed a wrong doing by selling its product indiscriminately and not requiring users to report flaws to Apple was rejected by the Judge.

According to the Judge, this argument was puzzling if not disingenuous since Apple has never imposed a reporting requirement under its Bug Bounty Program.

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