Copyright Law | Expert Legal Commentary

November 18, 2011

Apple v. Psystar: Ninth Circuit Upholds Validity of Software Licensing Agreements against Copyright Misuse Defense

Apple, Inc., v. Psystar, Corp.

By Ryan Smith and Thomas F. Zuber of Zuber & Taillieu

The Ninth Circuit recently upheld the validity of conditional software licenses which avoid the pitfalls of the first sale doctrine. In Apple, Inc., v. Psystar, Corp., No. 10-15113, 2011 U.S. App. WL 4470623, (9th Cir. Sept. 28, 2011), the Ninth Circuit upheld a permanent injunction against Psystar due to its infringement of Apple’s copyrighted software. Psystar asserted copyright misuse defense against Apple. However, the Court found that Apple’s valid software licensing agreement did not prevent Psystar from making competing products, and thus was not a misuse of copyright.

About the Authors

Ryan Smith is a Partner of Zuber & Taillieu, focusing on entertainment law.

Thomas F. Zuber is a Partner of Zuber & Taillieu, focusing on intellectual property protection and exploitation.

Image Credit: ©iStockphoto.com/alexsl

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Ryan Smith
Thomas F. Zuber

Companies Mentioned

Apple, Inc.

Psystar Corp.

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MGA Entertainment (HK) Ltd.

Mattel, Inc.

MGA Entertainment Inc.

UMG Recordings, Inc.

American Society of Composers, Authors, and Publishers

Derek Andrew, Inc.

Metro-Goldwyn-Mayer Pictures, Inc.

Geoffrey Productions, Inc.

Universal City Studios LLLP

Twentieth Century Fox Film Corp.

Turner Network Television LP, LLLP

Simon & Schuster, Inc.

Turner Network Sales, Inc.

Turner Classic Movies, LP, LLLP

Turner Broadcasting System, Inc.

The Cartoon Network LP, LLP

Paramount Pictures Corp.

NBC Studios, Inc.

Disney Enterprises, Inc.

Veoh Networks, Inc.

CSC Holdings, Inc.

CBS Broadcasting Inc.

Cablevision Systems Corp.

Cable News Network LP, LLLP

American Broadcasting Companies, Inc.

Westbound Records, Inc.

Kamind Associates, Inc. a.k.a. KAM Industries

Janice Combs Publishing, Inc. d.b.a. Justin Combs Publishing

All Headline News Corp.

Bad Boy Records LLC

American Software Development Company, Inc.

Bad Boy Entertainment, Inc. d.b.a. Bad Boy Records

Affordable Video Systems, Ltd.

Yahoo! Inc.

Dream Games of Arizona, Inc.

Television Music License Committee

Frank Diana City Entertainment

SESAC, Inc.

PC Onsite

RealNetworks, Inc.

AOL LLC f.k.a. America Online, Inc.

Northern Lights Products, Inc. d.b.a. GlowProducts.com

Litecubes, LLC

Poof Apparel Corp.

Warner Brothers Entertainment, Inc.

Editions Limited West, Inc.

ABP, Inc. d.b.a. SCB Distributors Inc.

Meshwerks, Inc.

Radar Pictures, Inc.

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