Apple Asks Court to Resume Psystar Case

June 7th, 2009 at 2:04 PM - TMO Scoop by Jeff Gamet

Apple filed a motion with the U.S. Bankruptcy Court in Miami on Friday requesting a modification of the stay that is preventing it from moving forward with its case against Psystar in the Northern District Court in California. Apple's case against Psystar for selling PCs with Mac OS X preinstalled has been on hold ever since the PC maker filed for Chapter 11 bankruptcy protection at the end of May.

Psystar's bankruptcy filing put Apple's case in northern California temporarily on hold because all legal actions involving the PC maker are automatically stalled while the bankruptcy court begins its proceedings. Apple's Motion for Relief from the stay, if granted, would help minimize lost time while waiting for the bankruptcy case to run its course.

Apparently some 80 percent of Psystar's computer sales are Mac clones, and the company is still offering those PCs for sale. Since the automatic stay preventing Apple's case from moving forward could last for months, the company could potentially continue selling its unauthorized Mac clones the entire time -- something Apple is hoping to prevent.

According to Apple's motion, "Delay of the Infringement Action will permit Psystar to continue selling its infringing computer systems in violation of Apple's intellectual property rights with impunity, thus tarnishing the reputation of Apple's genuine products to Apple's obvious detriment."

Apple is also contending that without a resolution in its case against Psystar, the bankruptcy judge won't be able to approve a reorganization plan for the company.

Apple's case against Psystar is scheduled for a November 9 court date, but the bankruptcy stay could push that date into 2010, especially if the bankruptcy court judge denies Apple's request. Psystar, however, is likely hoping the judge denies Apple's request since it already owes its legal team over US$88,000 and most likely doesn't have the resources to deal with its bankruptcy and Apple at the same time.