Apple's Copyright Infringement Claims Against Florida Security Startup Thrown Out By Court

A court in Florida has dismissed claims of copyright infringement brought on by Apple Inc AAPL against the startup Corellium, LLC.

What Happened: The order — given in favor of Corellium —  by the United States District Court for Southern District of Florida noted that the software emulation of the iOS operating system by the startup was tantamount to “fair use.”

“Corellium’s profit motivation does not undermine its fair use defense, particularly considering the public benefit of the product.” wrote Judge Rodney Smith.

Why It Matters: Smith’s ruling established that Corellium’s product served a “transformative” purpose by adding features beneficial to security research. 

The Tim Cook-led company contended that Corellium “merely modifies iOS” and offers the software in a different medium that is virtual instead of on a physical device.

While the court has deemed Corellium’s use of iOS as fair use, it said Apple can pursue a case it filed in August 2019 that alleges the latter circumvented the tech giant’s iOS security measures.

Last month, Apple suffered a setback in U.S. District Court when its claims of theft against game maker Epic were dismissed.

Price Action: Apple shares closed nearly 1.3% lower at $134.87 on Tuesday and fell 0.13% in the after-hours session.

Related Link: Apple In The Crosshairs Of Chinese AI Firm's $1.4B Patent Infringement Lawsuit