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bankruptcy posts

Filed under: Hardware, OS, Software, Apple

Psystar alienates the Hackintosh community, too

Say what you will about Psystar, the community that continues to sell computers running OS X, despite bankruptcy, constant legal problems with Apple, and a case so slim even their own legal team gave up. Sure, they're out of reason, out of room, and way out of line, but at least they've got plenty of cojones, as the locals say.

Why else would they say the things they do in this Miami Times article? Our friends at Engadget lay out just what's wrong with that piece, from Robert and Rudy's Pedraza's claims that they "cracked the code" behind OS X, to the suggestions and hints that what they're doing just might not be a contract violation. Whether or not Apple's EULA is enforceable is, of course, one of the arguments at issue in Psystar's case, even though plenty of shrinkwrap licenses have been upheld in court before. Apple's also got a copyright infringement claim against Psystar; this will be one of the topics at today's summary judgement hearing in California.

But the kicker in all this is the statement that Rudy Pedraza makes about the famed Hackintosh scene -- a community of people who persist in running OS X on hardware and devices that it wasn't supposed to run on (not nearly as much of a problem to Apple, as they don't sell the capability like Psystar does, but still not technically allowed by the license agreement). Surely, you might think, this is where the Pedrazas could find friends; surely, despite all of the commotion they're causing, this is the place where they could find a kind ear and a helping hand. Nope. From the article: "The first thing you have to do is unlearn everything you've read online about how to make this work," Rudy says, "because it's all wrong."

Nice. Way to alienate the one group, the one community that might still support your cause. I wish Psystar the best of luck -- not, mind you, because I need to buy or run any of their machines (I buy Apple because I appreciate both the hardware and the software), but just because their story continues to be so darn entertaining.

Filed under: Analysis / Opinion, Apple

Psystar bankruptcy dismissed, stays against Apple blocked

Over the weekend, The Mac Observer posted a detailed analysis of the latest chapter in the Psystar saga. It's taken me a few days to come down from vacation and try to wrap my brain around the legalese, but here's the condensed version of what happened.

Psystar was granted its motion to dismiss its Chapter 11 bankruptcy filing in the State of Florida. The judge in the case must feel that Psystar will either try to file for Chapter 7 (liquidation) bankruptcy or try to delay Apple's case in California against the clone maker (now scheduled to start on January 11, 2010) with another Chapter 11 filing. Why? The judge has stipulated that Psystar will not be granted an automatic stay in the case if they file for Chapter 7 bankruptcy, and has blocked Psystar against filing Chapter 11 again for another six months.

Translation: "Hey, Psystar! You can't use bankruptcy to weasel out of Apple's case against you."

We don't know if Psystar has been selling a lot of Mac clones or if there is a secret admirer with deep pockets lurking in the wings, but by removing Chapter 11 protection, creditors who are owed money can now file suit for financial relief. Those creditors include Psystar's previous law firm, Carr & Farrell, which is owed about $88,000. One of the other companies that may line up for compensation could be Apple, which may very well be owed payment for shrink-wrapped copies of Mac OS X that were purchased by Psystar.

More legal moves will undoubtedly unfold in the months leading up to the January court date, so keep your browser pointed to Court TV TUAW for updates about this seemingly never-ending battle.

Filed under: Apple Corporate, Hardware

Psystar files for Chapter 11, tucks tail between legs

In the fight for the right to party sell unauthorized Mac clones, there may be a victor declared sooner rather than later -- if not legally, then fiscally. Psystar, which has been playing with fire for quite some time, recently hit a snag in its battle with Apple. The Mac Observer is reporting that Psystar has filed for bankruptcy in Florida on Thursday thereby slowing Apple's case against the Mac clone vendor.

As TMO points out, this action seems to indicate that the financial supporters of Psystar are seeing the writing on the wall and believe Apple will likely be the victor in the legal battle for distribution rights of OS X-running Macintosh clones.

One outcome of Psystar's decision to file Chapter 11 is that its equity creditors will be revealed, finally pulling the curtains off of the secret of who has the (possibly) deep pockets in Psystar's legal battle. Another outcome is that Apple's case against Psystar will be temporarily delayed as the bankruptcy proceedings require all other legal action involving Psystar to be put on hold.

Currently Psystar is still selling its 'wares online, however, once the Federal judge presiding over the bankruptcy filing lifts the stay of legal actions, it is likely that Psystar will fold under the financial pressure. Psystar's chutzpah notwithstanding, the bankruptcy hearings are set to begin on June 5; stay tuned folks, this is still going to be messy.

[via Twitter, a tip of the hat to @PaulKent!]

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