The respondent held a registered copyright in two operating system programs for its computers.
The appellants copied the programs, which were embedded in silicon chips, and sold clone computers.
The appellants admitted the written assembly language versions were copyrightable but argued the silicon chips were not.
The Supreme Court of Canada held that the programs embedded in the silicon chip are a reproduction of the programs in assembly language and are protected by copyright under s. 3(1) of the Copyright Act.
The appeal was dismissed.