Apple loses copyright claims in US security bug boot lawsuit

(Reuters) – A federal judge in Florida dismissed allegations of copyright infringement by Apple Inc on Tuesday against a Florida startup whose software helps security researchers find vulnerabilities in Apple products, including the iPhone.

ARCHIVE PHOTO: The Apple logo is seen at an Apple Store in Brooklyn, New York, USA, October 23, 2020. REUTERS / Brendan McDermid

United States 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 was considered “fair use” because it was “transformative” and helped developers find security holes .

Apple accused Corellium of essentially replicating iOS to create “virtual” devices operated by iOS, whose “only function” was to run unauthorized copies of the system on non-Apple hardware.

But the Fort Lauderdale judge said Corellium “adds something new to iOS”, allowing users to see and stop running processes, take live snapshots and conduct other operations.

“Corellium’s profit motive does not undermine its defense of fair use, especially considering the public benefit of the product,” wrote Smith.

The judge also rejected Apple’s argument that startup Delray Beach acted in bad faith by selling its product indiscriminately, potentially including to hackers, and not requiring users to report bugs to Apple.

He said the argument seemed “intriguing, if not concealed”, saying that Apple, based in Cupertino, California, did not impose a reporting requirement on its own Bug Reward Program.

Apple did not immediately respond to requests for comment.

Corellium denied any wrongdoing. Justin Levine, one of his lawyers, said in an email that the decision made “proper conclusions regarding fair use”.

Smith said Apple could still pursue a separate federal law, claiming that Corellium circumvented its security measures when creating its software.

Corellium was founded in August 2017. According to court records, Apple tried to buy Corellium from January 2018, but negotiations were halted in the summer. Apple sued Corellium in August 2019.

The case is Apple Inc v. Corellium LLC, US District Court, South Florida District, No. 19-81160.

Jonathan Stempel reporting in New York; Editing by David Gregorio

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