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COPYRIGHT; MISUSE (It is not misuse when a copyright holder limits the right to use their work.)

Apple Inc. (“Apple”) created Mac OS X software for Apple computers.�� Psystar Corp. (“Psystar”) made computers and sold them with Mac OS X software loaded onto them.�� Apple sued Psystar alleging copyright infringement of its Mac OS X software because Apple specifically limited the use of its Mac OS X software to Apple Computers.�� The district court found that Apple had a valid copyright in the Mac OS X software and that Psystar had infringed Apple’s copyright by putting the Mac OS X software on Psystar’s computers that it sold.�� Psystar appealed the district court’s decision and argued that Apple’s limitation on the copyright of Mac OS X software was a misuse of its copyright because the Apple was trying to control the Mac OS X software after it was sold.�� Psystar argues that because it purchased retail versions of Mac OS X software, Apple’s copyright shouldn’t control where they put the software after they purchase it.�� However, the Court of Appeals held that Apple was not misusing its license by placing a condition on the use of their software because other competitor’s can still create their own operating systems.�� The Court of Appeals AFFIRMED judgment in favor of Apple.