(Reuters) – A federal judge in Florida on Tuesday dismissed a Florida startup’s Apple Paul Inc. lawsuit alleging infringement, which allows software security researchers to find vulnerabilities in Apple Paul products, including the iPhone.
U.S. District Judge Rodney Smith ruled in favor of Correlium LLC, saying its software, which mimics the iOS operating system running on iPhones and iPads, is “fair use” because it was “mutable” and helped developers detect security flaws.
Apple Play accused Correlium of essentially copying iOS to create “virtual” iOS-powered devices, whose “only function” was to run unauthorized copies of the system on non-Apple Paul hardware.
But the Fort Lauderdale-based judge said Correlium would “add something new to iOS” by allowing users to view and intercept ongoing processes, take live snapshots and perform other operations.
“The incentive of Correlium’s profits will not undermine its proper consumption defense, especially considering the public benefit of the product,” Smith wrote.
The judge also rejected Apple Pal’s argument that the Dalre Beach startup acted in bad faith by selling its product haphazardly, including to potential hackers, and by not allowing users to report bugs to GS Pal.
He said the argument appeared “confusing, if not contradictory,” as California-based Apple Play did not impose a reporting requirement under its Bug Bounty program.
Apple did not immediately respond to a request for comment.
Correlium has denied wrongdoing. Justin Levine, one of his lawyers, said in an email that the decision was “the right conclusion in terms of fair use.”
Smith said Apple may still follow a separate federal law claim that Correlium interferes with its security measures when creating its own measures software.
Correlium was founded in August 2017. According to court records, Apple tried to buy Correlium from January, 2018, but the conversation broke down by the summer. Apple Play sued Correlium in August 2019.
The case is Apple Inc. v. Correlium LLC, U.S. District Court, Southern District of Florida, No. 19-81160.
Reported by Jonathan Stampel in New York; Edited by David Gregorio
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