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PSYSTAR’S RESPONSE TO APPLE’S MOTION FOR SUMMARY JUDGMENT(CV 08-03251 WHA)i

K.A.D. CAMARA (TX Bar No. 24062646/MA Bar No. 661087 –

Admitted Pro Hac Vice

)camara@camarasibley.comKENT RADFORD (TX Bar No. 24027640 –

Admitted Pro Hac Vice

)radford@camarasibley.comCAMARA & SIBLEY LLP2339 University BoulevardHouston, Texas 77005Telephone: (713) 893-7973Facsimile: (713) 583-1131EUGENE ACTION (SBN 223023)eugeneaction@hotmail.com1780 E. Barstow Ave., #5Fresno, California 93710Telephone: (559) 283-9772Facsimile: (559) 642-2843IN THE UNITED STATES DISTRICT COURTFOR THE NORTHERN DISTRICT OF CALIFORNIASAN FRANCISCO DIVISIONAPPLE INC., a California corporation,

Plaintiff

,v.PSYSTAR CORPORATION,

Defendants

.AND RELATED COUNTERCLAIMSCASE NO. CV-08-03251-WHA

PSYSTAR’S RESPONSE TOAPPLE’S MOTION FOR SUMMARYJUDGMENT

Case3:08-cv-03251-WHA Document195 Filed10/22/09 Page1 of 28

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PSYSTAR’S RESPONSE TO APPLE’S MOTION FOR SUMMARY JUDGMENT(CV 08-03251 WHA)ii

TABLE OF CONTENTS



TECHNICAL BACKGROUND..........................................................................................1



II.



BREACHES OF THE SLA DO NOT MAKE PSYSTAR LIABLE FOR COPYRIGHT INFRINGEMENT........................................................................................8



III.



PSYSTAR DID NOT ENGAGE IN COPYRIGHT INFRINGEMENT..............................9



Psystar Does Not Violate Apple’s Reproduction Right Because Of § 117And, In The Alternative, Fair Use................................................................................10



Psystar Does Not Violate Apple’s Distribution Right Because Of § 109....................12



Psystar Does Not Violate Apple’s Right To Create Derivative WorksBecause Psystar Does Not Create Derivative Works...................................................13



Installing multiple pieces of software on a computer does not createa set of derivative works.........................................................................................13



Apple’s cases —

Dun & Bradstreet

Strohon

, and

Artic

— areinapposite because they concern defendants who modified the plaintiff’s source code or object code, something that Psystar did notdo............................................................................................................................14



Psystar Owns The Copies Of OS X That It Buys.........................................................16



Section 117 Applies To Psystar’s Installation Of Copies Of OS X.............................17



Psystar has not waived its § 117 defense................................................................17



Section 117 applies to Psystar even though Psystar installs copies of OS X for the ultimate purpose of resale to end users.............................................18



IV.



PSYSTAR DID NOT VIOLATE THE DMCA.................................................................19



VI.



MILLIONS TOO MUCH...................................................................................................22



Case3:08-cv-03251-WHA Document195 Filed10/22/09 Page2 of 28

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PSYSTAR’S RESPONSE TO APPLE’S MOTION FOR SUMMARY JUDGMENT(CV 08-03251 WHA)iii

TABLE OF AUTHORITIES

ASES



AppleComputer,Inc.v.FormulaInt’l,Inc.

,562F.Supp.775(N.D.Cal.1983) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐18

 AppleComputer,Inc.v.FormulaInt’l,Inc.

,594F.Supp.617(N.D.Cal.1984) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 18,19

ChamberlainGroup,Inc.v.SkylinkTechnologies,Inc.

,381F.3d1178(7thCir.2004) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐19

Dun&BradstreetSoftwareServices,Inc.v.GraceConsulting,Inc.

,307F.3d197(3dCir.2002)ii,14,15

MidwayMfg.Co.v.ArticInt’l,Inc.

,704F.2d1009(7thCir.1983) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ii,14,16

MidwayMfg.Co.v.Strohon

,564F.Supp.741(N.D.Ill.1983)‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ii,14,16

PracticeMgmt.Info.Corp.v.AmericanMed.Ass'n,121

F.3d516



(9thCir.1997) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐20

Realnetworks,Inc.v.DVDCopyControlAss’n

,No.C‐08‐4548‐MHP,2009WL2475338(N.D.Cal.2009)‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐20

SegaEnterprisesLtd.v.Accolade,Inc.

,977F.2d1510(9thCir.1992) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 12,17

Silversteinv.PenguinPutnam,Inc.

368F.3d77(2dCir.2004)‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐14

StorageTechnologyCorp.v.CustomHardwareEngineering&ConsultingInc.

,421F.3d1307(Fed.Cir.2005) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐20

SunMicrosystems,Inc.v.MicrosoftCorp.

188F.3d1115(9thCir.1999)‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐9

TorahSoftLtd.v.Drosnin,

136F.Supp.2d276(S.D.N.Y.2001)‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐14

TriadSystemsCorp.v.SoutheasternExp.Co.

64F.3d1330(9thCir.1995) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐21