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Apple loses copyright claims in lawsuit against U.S. security bug startup

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Wed, Dec 30, 2020 12:02 AM

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By Jonathan Stempel - A federal judge in Florida on Tuesday dismissed Apple Inc's copyright infringe

[DearWallstreet.com] DWS Daily on Dec 29, 2020 EMAIL}/redirect [Apple loses copyright claims in lawsuit against U.S. security bug startup Jonathan Stempel]( Image]( By Jonathan Stempel (Reuters) - A federal judge in Florida on Tuesday dismissed Apple Inc's copyright infringement claims against a Florida startup whose software helps security researchers find vulnerabilities in Apple products including the iPhone. U.S. District Judge Rodney Smith ruled in favor of Corellium LLC, saying its software emulating the iOS operating system that runs on the iPhone and iPad amounted to "fair use" because it was "transformative" and helped developers find security flaws. Apple accused Corellium of essentially replicating iOS to create "virtual" iOS-operated devices, whose "sole function" was to run unauthorized copies of the system on non-Apple hardware. But the Fort Lauderdale-based judge said Corellium "adds something new to iOS" by letting users see and halt running processes, take live snapshots, and conduct other operations. "Corellium's profit motivation does not undermine its fair use defense, particularly considering the public benefit of the product," Smith wrote. The judge also rejected Apple's argument that the Delray Beach startup acted in bad faith by selling its product indiscriminately, including potentially to hackers, and by not requiring users to report bugs to Apple. He said that argument appeared "puzzling, if not disingenuous," saying Cupertino, California-based Apple did not impose a reporting requirement under its own Bug Bounty Program. Apple did not immediately respond to requests for comment. Corellium has denied wrongdoing. Justin Levine, one of its lawyers, said in an email the decision made "proper findings in connection with fair use." Smith said Apple may still pursue a separate federal law claim that Corellium circumvented its security measures when creating its software. Corellium was founded in Aug. 2017. According to court records, Apple tried to buy Corellium starting in Jan. 2018, but talks had broken down by summer. Apple sued Corellium in Aug. 2019. The case is Apple Inc v. Corellium LLC, U.S. District Court, Southern District of Florida, No. 19-81160. (Reporting by Jonathan Stempel in New York; Editing by David Gregorio) [Verizon says could stop offering Hearst TV channels amid price dispute]( (Reuters) - Verizon Communications Inc indicated on Tuesday it might stop offering channels owne...([Continue Reading]( EMAIL}/redirect [Explainer: How does Canada's Clean Fuel Standard policy work?]( By Nia Williams CALGARY, Alberta (Reuters) - Canada published the draft Clean Fuel...([Continue Reading]( [Exclusive: Hedge fund Third Point urges Intel to explore deal options]( By Svea Herbst-Bayliss (Reuters) - Activist hedge fund Third Point LLC is pushing ...([Continue Reading]( EMAIL}/redirect GENERAL NOTICE AND DISCLAIMER - PLEASE READ CAREFULLY THE FOLLOWING NOTICE AND DISCLAIMER MUST BE READ AND UNDERSTOOD AND YOU MUST AGREE TO THE TERMS CONTAINED THEREIN BEFORE USING THIS WEBSITE OR SUBSCRIBING TO OUR NEWSLETTER.This is a PAID ADVERTISEMENT provided to customers/subscribers of dearwallstreet. 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