A California federal judge has dealt a significant blow to Musi Inc., rejecting the music streaming service's attempt to return to Apple's App Store after it was removed for alleged intellectual property (IP) violations. The decision highlights Apple’s broad authority to manage its digital marketplace.

The Legal Battle Over App Store Access

In a ruling issued Thursday, U.S. District Judge Eumi K. Lee dismissed Musi’s request for a preliminary injunction that would have forced Apple to reinstate the app. Musi had filed suit in October, claiming that Apple had wrongfully removed its app due to an unsubstantiated copyright complaint from YouTube.

However, Judge Lee found that Musi had not demonstrated that Apple violated its terms of the Apple Developer Program License Agreement (DPLA). The agreement grants Apple substantial discretion over which apps remain on its platform, and the judge emphasized that the tech giant properly notified Musi about the removal.

Apple’s Broad Discretion in App Removal

“Apple gave Musi notice of termination,” Judge Lee’s order stated, citing multiple warnings issued to the app. The judge concluded that Musi had failed to show a serious question that Apple breached the DPLA.

Musi’s app, which has amassed millions of downloads, faced criticism from third parties such as YouTube, the National Music Publishers Association (NMPA), and the International Federation of the Phonographic Industry (IFPI). These organizations alleged that Musi violated intellectual property rights, primarily by using YouTube content without proper authorization and generating advertising revenue through it.

The Complex Web of Alleged Infringement

At the heart of the dispute is Musi’s practice of offering music available on YouTube, which the IFPI claims is done without permission. YouTube has also accused Musi of violating its terms of service by monetizing its content through ads while depriving artists of royalties, according to the NMPA.

Despite ongoing discussions between the parties, the issue remained unresolved, prompting Apple to remove Musi’s app from the App Store in September. Musi subsequently filed a lawsuit, accusing Apple of acting in bad faith and violating the DPLA.

Judge Dismisses Claims of Bad Faith and Unreasonable Removal

Musi argued that Apple, by positioning itself as an impartial operator of the App Store, had conspired with music industry giants to destroy the company, citing undisclosed backchannel discussions. However, Judge Lee focused on whether Apple had a reasonable belief that Musi was infringing intellectual property rights—and ruled that it did.

Based on the available evidence, the judge found that Musi had not made a compelling case that Apple’s decision to remove the app was unreasonable. Furthermore, Musi's slow response to the infringement complaints contributed to the decision.

Apple's Discretion Upheld

Judge Lee also rejected Musi’s claim that Apple violated the covenant of good faith and fair dealing. The court emphasized Apple’s broad discretion in managing its marketplace and its right to enforce the rules governing the App Store.