Computer Edge Pty Ltd v Apple Computer Inc

Computer Edge Pty Ltd (Computer Edge) and others were sued by Apple Computer Inc (Apple) for alleged infringement of copyright in Apple's operating system software for its Apple II microcomputers. Computer Edge had imported and sold microcomputers that were compatible with Apple II software, and had also sold copies of Apple's operating system software, which they claimed were necessary for the computers to function. Computer Edge argued that their actions did not constitute copyright infringement, and that the copyright in the software was invalid. The case was heard by the High Court of Australia.

The High Court was required to determine whether the reproduction of Apple's operating system software by Computer Edge constituted an infringement of copyright. Specifically, the court had to consider whether the software, embodied in a ROM chip, was a "writing" or "other work" within the meaning of the Copyright Act 1968 (Cth), and whether the reproduction of the software for the purpose of enabling a compatible computer to operate was a lawful use. The validity of Apple's copyright was also challenged.

The majority of the High Court, comprising Gibbs C.J. and Wilson J, held that the operating system software was a literary work protected by copyright. They reasoned that the instructions contained within the software, even though embodied in a ROM chip and not directly readable by humans, were a form of expression that fell within the scope of copyright protection. The court found that Computer Edge's reproduction of the software, by copying it onto ROM chips for their compatible computers, constituted infringement. Murphy J dissented, arguing that the software was not a literary work in the traditional sense and that the purpose of the reproduction was to enable the use of a compatible machine, not to compete with the original work.

The High Court, by majority, found that Computer Edge had infringed Apple's copyright. The appeal was dismissed, and Computer Edge was ordered to pay Apple's costs.