Apple Inc. v. Psystar Corp.

This case raises important issues regarding the doctrine of “copyright misuse” as it has developed in the wake of the technological revolution of the last 30 years. Plaintiff-Appellee, Apple Inc. (“Apple”), is one of the leading producers of innovative technological hardware and software that has spurred enormous consumer demand for ever evolving technology. The Defendant-Appellant, Psystar Corp. (“Psystar”), is a small computer manufacturer. Apple brought this action against Psystar for copyright infringement because Psystar was using Apple’s software on Psystar computers.

The district court in a published decision held that Psystar was infringing Apple’s federally registered copyrights in its operating software, Mac OS X, because Psystar was copying Mac OS X for use in Psystar’s computers. Apple, Inc. v. Psystar Corp. (Apple I), 673 F.Supp.2d 931, 935-40 (N.D.Cal.2009). This infringement finding is not challenged on appeal. The court rejected Psystar’s copyright misuse defense that asserted the unenforceability of Apple’s Software License Agreement (“SLA”), requiring Mac OS X users to run their copies on Apple computers. Id. at 939^10. Psystar appeals that ruling, as…