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, which were compatible with Apple's software, and had also supplied copies of Apple's operating system software. The dispute concerned whether the reproduction of Apple's software by Computer Edge constituted copyright infringement. The case was heard by the High Court of Australia.

The central legal issue before the High Court was whether the reproduction of a computer program, which was embedded in a microchip and was essential for the operation of a compatible computer, constituted an infringement of copyright in that program. Specifically, the court had to determine if the "use" of a computer program in the course of operating a compatible machine, where that use necessarily involved the reproduction of the program in the computer's memory, was an authorised act or an infringement of the copyright owner's exclusive rights.

The High Court, by a majority, held that the reproduction of the Apple operating system software by Computer Edge was not an infringement of copyright. The majority reasoned that the Copyright Act 1968 (Cth) protected the expression of an idea, not the idea itself. While the software was protected by copyright, the act of using the software to operate a compatible computer, which necessarily involved its reproduction in the computer's memory, was not an act of "reproduction" in the sense contemplated by the Copyright Act for the purpose of infringement. The court distinguished between the reproduction of the work itself and the use of the work to achieve a functional outcome. The majority found that Computer Edge had not reproduced the program in a way that would constitute infringement, as the reproduction was incidental to the use of the program for its intended purpose in a compatible machine.

The High Court allowed the appeal, setting aside the orders of the Full Federal Court.