Psystar Files Bankruptcy, Stalls Apple’s Case

| TMO Scoop

Unauthorized Mac clone maker Psystar has filed for Chapter 11 bankruptcy protection in Florida, temporarily slowing down Apple's legal case against it. The filing may be an indication that the company's financial backers have pulled out, signaling they see Apple as the clear winner in court.

The bankruptcy documents were filed with the Federal Courts in Florida on Thursday, and Apple's legal team was most likely made aware of the situation over the Memorial Day weekend.

The Florida court will hold a hearing on June 5 where Psystar's equity creditors will be revealed -- which means if there have been deep pockets behind the company's fight against Apple, those names will finally come out of the shadows.

Psystar's bankruptcy filing will temporarily slow down Apple's case in northern California because all legal actions involving the PC maker are automatically put on hold while the bankruptcy court begins its proceedings. The judge overseeing the case will, however, most likely lift that stay within a few months, allowing Apple's case to start moving forward again.

Apple hit Psystar with a lawsuit claiming the company was violating the Mac OS X licensing agreement with end users, and that it was violating the Digital Millennium Copyright Act with the steps it used to install the Mac operating system on PCs.

Despite Apple's claims that the company doesn't have permission to sell PCs with Mac OS X, and now its bankruptcy filing, Psystar is still offering Mac clones for sale on its Web site.

Even if Psystar has plans of continuing its battle against Apple to sell PCs with Mac OS X installed, it isn't in a strong position to move forward once the Judge overseeing its bankruptcy lifts the automatic stay since it doesn't likely have money to pay for its legal defense. Without the cash to pay its legal team, Psystar probably won't have anyone to represent it in court, and won't be in a position to defend itself against Apple.

Comments

Bennyboy

Wow, I wonder if Rudy knew that his backers would stab him in the back and have him file for bankruptcy so that they can pull out and make Apple trace who is exactly behind all this.

This is going to get ugly.

ChoMomma

This is going to get ugly.

I think it already has gotten ugly.  Have you seen those Psystar cases?

Alan Smith

What goes around comes around!

geoduck

It’s not a surprise. Psystar was acting like morons in court (we’re small so we don’t have to keep financial records). The deep pockets probably realized that these guys were not going anywhere but down even if Psystar had some kind of good argument to present.

ChoMomma

Someone needs to head down to Round Rock, TX and see if a lot of paper shredding activity is going on now.

Bennyboy

Ironically Round Rock has a pretty good size Applecare call center.  Those guys are great and have always provided great support to me and my clients.

What are the speculations on who is behind this, Dell, HP?  I second the vote for Dell.

Who do you think is behind Psuckstar?

Voice

My suspicion is that Psystar is simply a few people who thought they had a sure-fire, under-served market with virtually no competition.  Seriously, the way people complain about Apple’s prices and the fact that you can’t get just any box configuration that will run OS X *screams* “We want to buy something!”.

Unfortunately, what they discovered is that, despite the way people complain, people are, by and large, happy with the hardware selection and quality of service offered by Apple.  Those that aren’t are such a small fraction of even the *potential* market that they simply cannot support a business.  (They tend to be the sort of people who can’t afford a $1000 computer, but can afford to spend 100+ hours getting a computer to work and keeping it working.  aka: technologically savvy students and teenagers)

geoduck

The Florida court will hold a hearing on June 5 where Psystar’s equity creditors will be revealed—which means if there have been deep pockets behind the company’s fight against Apple, those names will finally come out of the shadows.

Didn’t Psystar just say in court that it doesn’t keep financial records?


<<Aside>>
Am I crazy or were there more comments earlier that have disappeared? This isn’t the first time I have suspected that the new comments Db is leaky.

xmattingly

Am I crazy or were there more comments earlier that have disappeared? This isn?t the first time I have suspected that the new comments Db is leaky.

Yes and yes. You’re only as crazy as an Original Thinker—and the comments DB may be as leaky as Psystar’s balance sheet. :D

There was actually a comment you wrote earlier that I was going to respond to, but it appears to be gone. Oh well… in any event, Psystar’s game is over. The events surrounding that business and the subsequent lawsuit are about the most surreal thing I can recall in the tech industry… other than Monkey Boy’s sweaty, coronary-inducing dance hysteria.

Stephen Swift

Sorry folks for the comment mishap, it was an accident relating to our database.

Mike

Psystar is not backed by any high profile company. At best, it gets its additional capital from some wannabe Miami investors. You are giving them way too much credit. They sold a couple hundred thousand dollars worth of computers, but forgot to take into account for operational costs, legal fees and changing demand. They did some lavish spending and now are filing for bankruptcy. After all, Psystar is run by a High school and College dropout who both want to prove to everyone that they are God’s gift to humanity. Rudy is a smart guy (Robert not so much), but cannot run a company wisely before his ego gets in the way. Quite a tragic story.

lunarts

I am very pleased with my Psystar Computer system, it works very well. I have two Macs but they don’t compare with this PC solution. I understand my upcoming problem, I will have to stick to the system I have now, no upgrades of Mac and Psystar. Never mind, I work something out. Mac is too expensive and they are far behind in technology and service.

Matt

Are you kidding me? Mac is awesome! I’ve been using Mac for quite some time now and I have no complains.
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dhamphy

Well I think Mac is still the best among all PC.
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Ryan

That’s true. Mac truly is great. And they never seize to amaze me with their latest updates.
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Lam

This story is linked from Wikipedia and you’ve allowed spambots to advertise here. Please offer some sort of “report abuse” option, please smile

Azura

I would certainly agree that Mac really is great and is really amazing!
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lunarts

Mac was great and is not anymore, I just upgraded my PC (on OS X) with hardware Mac cannot deliver. Still, OS X is the best and not like exploding I pods. Mac is not the most innovating company anymore.

Please wake up and take the change to make OS X working better using PC’s (I am working with Mac since 1995).

Azura

We have our own satisfaction. I am already satisfied with Mac. No questions about it.

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Greg

Mac is great. Its designs are slick and continues to evolve. If you want a stable and dependable OS then Mac is for you but if you want an easier, more user friendly one then you should go with Windows.
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They sold a couple hundred thousand dollars worth of computers, but forgot to take into account for operational costs, legal fees and changing demand. They did some lavish spending and now are filing for bankruptcy. After all, Psystar is run by a High school and College dropout who both want to prove to everyone that they are God?s gift to humanity. Rudy is a smart guy (Robert not so much), but cannot run a company wisely before his ego gets in the way. Quite a tragic story….online casino

iva

I think it not more than a publicity stunt. I have seen an ordinary company dealing with wireless products and buying xbox360wireless domain and then start fighting with microsoft at courts. Apple and Mac are worldwide brands and even to fight with em will stand out you… How you nag the giants, don’t you know its the copyright issue at the start up?

iva

I think it not more than a publicity stunt. I have seen an ordinary company dealing with wireless products and buying xbox360wireless domain and then start fighting with microsoft at courts. Apple and Mac are worldwide brands and even to fight with em will stand out you? How you nag the giants, don?t you know its the copyright issue at the start up?

From <a herf=“http://www.deltadebtmanagement.com/”>iva</a>

iva

I think it not more than a publicity stunt. I have seen an ordinary company dealing with wireless products and buying xbox360wireless domain and then start fighting with microsoft at courts. Apple and Mac are worldwide brands and even to fight with em will stand out you? How you nag the giants, don?t you know its the copyright issue at the start up?


From iva

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