Apple loses copyright claims in a lawsuit against the start of U.S. security flaws

(Reuters) – A Florida federal judge on Tuesday dismissed Apple Inc.’s copyright infringement claims against a Florida company whose software helps security investigators find vulnerabilities in Apple products. including the iPhone.

U.S. District Judge Rodney Smith ruled in favor of Corellium LLC, saying its software that emulates the iOS operating system that runs on the iPhone and iPad equated to “fair use” because it was “transformative” and helped developers find security flaws.

Apple accused Corellium of essentially replicating iOS to create “virtual” devices that ran on iOS, whose “only 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 allowing users to view and stop running processes, take live snapshots, and perform other operations.

“Motivation to make a profit from Corellium does not undermine the advocacy of fair use, especially given the public benefits 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 not forcing users to report bugs to Apple.

He said that argument seemed “disconcerting, if not disinterested,” saying that Apple, based in Cupertino, California, did not impose any reporting requirements under its own Bug Bounty program.

Apple did not immediately respond to requests for comment.

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

Smith said Apple could still pursue an independent federal law that states Corellium evaded its security measures by creating its software.

Corellium was founded in August 2017. According to court records, Apple tried to buy Corellium from January 2018, but talks had broken down in the summer. Apple sued Corellium in August 2019.

The case is Apple Inc. v. Corellium LLC, U.S. District Court, South Florida District, no. 19-81160.