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

(Reuters) – A federal judge in Florida on Tuesday dismissed Apple Inc. copyright infringement claims against a Florida startup whose software is helping security researchers find vulnerabilities in Apple products including the iPhone.

PHOTO FILE: The Apple Inc logo can be seen hanging at the entrance of the Apple Store on 5th Avenue in Manhattan, New York, USA, October 16, 2019. REUTERS / Mike Segar

U.S. District Judge Rodney Smith ruled for Corellium LLC, saying its software reported on an iOS operating system running on the iPhone and iPad was becoming “fair use” as it was “transformational” and helped developers detect security flaws.

Apple accused Corellium of largely reproducing iOS to create “virtual” devices with iOS, and its only “duty” was to run unauthorized copies of the system on non-Apple hardware.

But the Fort Lauderdale-based judge said Corellium is “adding something new to iOS” by allowing users to view and pause running processes, take animations, and perform other activities.

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

The judge also rejected Apple’s argument that Delray Beach started in malice by selling its product unjustly, exploiting potential for hackers, and by not asking hackers. -users to report bugs to Apple.

He described that argument as “disingenuous, if not misleading,” saying Cupertino, a 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 been denied. Justin Levine, one of his lawyers, said in an email that the decision made “right decisions related to fair practice.”

Smith said Apple could still pursue a separate federal lawsuit 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 starting in January 2018, but talks had broken down before the summer. Apple rejected Corellium in August 2019.

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

Reporting by Jonathan Stempel in New York; Edited by David Gregorio

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