Psystar Releases New Mac Clone, Preps for Legal Battle

| News

Unauthorized Mac clone maker, Psystar, released yet another PC running Mac OS X despite the company's ongoing legal battle with Apple in California and bankruptcy in Florida. Despite the company's apparent inability to pay its legal bills, Psystar executives claim they are ready to "battle Goliath" in court, according to CRN.

"As you all may already be aware, in late May Psystar filed for Chapter 11 protection. Although this was critical to our continued daily operations, we now are ready to emerge and again battle Goliath," the company said.

Psystar's new Open(7) Mac clone.

After the PC maker began selling computers with Mac OS X pre-installed, Apple filed 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 used to install the Mac operating system on PCs. Psystar countered that it wasn't doing anything wrong, and that Apple is abusing its position as the only company that makes Mac OS X-compatible computers by blocking competition.

Psystar eventually filed for bankruptcy in Florida, citing its mounting legal debt. The filing automatically stopped Apple's case in California, but that stay was lifted June 22, allowing Apple move forward again.

Apple and Psystar are due to appear before Judge Alsup in the copyright violation case on July 9 for a case management hearing. At that time, the Judge plans to establish the guidelines for discovery requirements for his ruling that Psystar must produce financial documents along with someone competent to testify about the company's finances.

Psystar's newest Mac clone, the Open(7), may be available today, but it's unclear how long potential buyers will be able to get their hands on one. Unless the company has found a way to move forward with professional assistance, it will have a hard time defending itself against Apple's legal team.

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Comments

Tiger

Answer:  Psystar.

Question: What do you call a company that exhibits Chutzpah but has nothing to back it up???

The smackdown is a comin’!

DanielDecker

I’m gonna get one.

I mean, what’s to lose? An (Apple)unsupported, unauthorized, illegal Mac clone from a manufacturer in bankruptcy. I’m sure the customer support will be stellar.

Nemo

Having filed bankruptcy, Psystar must now seek the approval of Judge Mark in the bankruptcy court for all major expenditure of the assets of its bankruptcy estate.  While Judge Mark’s order modifying the automatic stay is an implicit grant of approval for Psystar to spend assets to defend itself against Apple Inc.‘s copyright case, Psystar must now report to Judge Marks in regular and detailed reports about the amount of its expenditures, their nature and purpose, the source of its expenditures, and how those expenditures will or at least are expected to benefit its bankruptcy estate and thus, its creditors, one of which is Apple Inc. (Apple).

It will be interesting see what is the source of Psystar’s funds for sustaining the defense of its lawsuit against Apple and continuing its operations.

Lee Dronick

As someone who no longer has a cholecyst I gotta admire Psystar’s gall, but as an AAPL stockholder I hope that they get duly punished by the courts.

geoduck

As you all may already be aware, in late May Psystar filed for Chapter 11 protection. Although this was critical to our continued daily operations, we now are ready to emerge and again battle Goliath,

Does that mean that they have a new source for money? Another deep pocket that wishes to remain in the shadows?

mathue

Where on earth do they find parts suppliers that are willing to provide them with goods??

Nemo

If Psystar now quickly emerges from Bankruptcy, a real question is whether Psystar ever really needed the protection of bankruptcy or whether it was simply using bankruptcy for an ulterior and improper purpose, which would be a violation of law?  If Psystar never needed to file for bankruptcy, neither Judge Alsup of the U.S. Dist. Court for the Northern District of California or Judge Mark of the Bankr. Ct. for the Southern Dist. of Florida will tolerates the misuse of bankruptcy to delay their respective proceedings, improperly attempt to avoid the effect of their respective rulings, and frustrate the Apple’s rights as plaintiff in Judge Alsup’s court and as a creditor in Judge Mark’s court.

B9robot

Good point Nemo, I wouldn’t be surprised at all if Psystar played the bankruptcy hand as a delay tactic only.

geoduck

Good insight Nemo. That seems more likely than anything else.

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