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Filed under: Analysis / Opinion, Hardware

Psystar emerges from Chapter 11, and still making applesauce

The infamous Mac-clone maker Psystar is apparently set to emerge from Chapter 11 bankruptcy, and it seems that they are planning on getting right back into their previous routine with a new hardware offering to boot.

In an e-mail newsletter that went out to subscribers today, the company states that the Chapter 11 protection was "critical" to their daily operations, and that they are now ready to "emerge and again battle Goliath." More information is expected to be available "in the coming days" when they are formally discharged by the Bankruptcy court.

Along with the announcement, the newsletter also introduces Psystar's newest hardware offering, the Open(7), which "brings together OS X and Intel Nehalem Xeon technology" in what they are calling their "fastest and most quiet computing configuration." In addition, they are stating that all new systems will feature a new bootloader, called the Darwin Universal Boot Loader (DUBL), and mentioned plans of an open source release in the near future.

The e-mail was wrapped up with a simple anecdote: When life gives you apples, make applesauce. So this begs the question, are they referring to the fruit, or the company?


Thanks to Sean Wightman for the tip!

Filed under: Analysis / Opinion, Hardware, Retail

Newcomer steps in to fill Mac clone "Quo"ta

Update: @JoeWilsonTV responded in the comments that Quo Computer is open (telephone number in his comment) and that they are taking orders in the store. The website is supposed to launch next Monday. Thanks Joe!

It seems like it was only last week that Mac clone maker, Psystar filed for Chapter 11 bankruptcy protection. Oh, that WAS last week. Surely, this would be the end of US companies trying to unauthorized Mac clones, right? Right?

Come on, this is America -- that would be too easy. In fact, it took just three days for the next would-be Mac clone retailer to appear.

As CNET reported over the weekend, Quo Computer plans to sell its Mac clone offerings both online and in a retail store in Los Angeles. The retail store was set to open yesterday, June 1, 2009, but I was unable to locate a phone number for the store (and LA's directory assistance didn't have a listing).

The website, though currently just a splash page, will apparently be ready sometime later this week. Apparently three models with OS X Leopard pre-installed will be offered, with pricing set to start below $900.

According to CNET, Quo's founder, Rashantha De Silva, expects that Apple will sue Quo, just as they sued Psystar. Well, at least he isn't completely delusional. More below...

Continue readingNewcomer steps in to fill Mac clone "Quo"ta

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!]

Filed under: Analysis / Opinion, Hardware, OS, Apple, Mac Pro

Psystar releases Open(3), plays with fire


Say, just for the sake of argument, that you're Psystar. You've been served by Apple for selling (they claim) illegal clones of their machines, and selling their OS (which you claim isn't even copyrighted) on illegitimate hardware. Sure, you've won a minor victory in the battle, but generally, the opinion is that you're a dead company walking -- when a company like Apple not only has it out for you but has pretty legit claims to back themselves up, you could be said to be in trouble. And so, what do you do?

Well if you are Psystar, you apparently release more computers. Determined to stick it to Apple as hard as they possibly can before they're legally wiped off the map, Psystar has announced the release of the Open(3), a desktop running OS X and packing up to a 2.53GHz Core2Quad Q8200 processor, up to 4GB of RAM and 1TB of storage, and all of the other usual options you'd want on a machine like this (6x Blu-ray burner, GeForce 9500GT). Technically, the box starts at $599, but as Engagdet notes, even if you max it out to around $2000, you're still paying less than an equivalent Mac Pro.

This is pretty much the computer retail equivalent of Bugs Bunny kissing the hunter. We can imagine Apple's lawyers steaming from the ears at this point -- here's hoping Psystar gets to have their fun while they can.

Filed under: iPhone, App Store, Jailbreak/pwnage

App Store facing competition from jailbreak app sales?

While we're pondering the consequences of RIM announcing that programs in the Blackberry "App World" must be at least $2.99US, there are alternatives to the iTunes App Store emerging from the jailbreak side of the iPhone world. The Wall Street Journal reports that Cydia is making the transition from package repository to a full app store. There are also plans for an adult-only app store and a new jailbreak service.

The big question at the moment is how will Apple take this? Apple filed a complaint with the US Copyright Office last month claiming that jailbreaking is illegal. They're not going to take firing a direct salvo at the App Store itself lightly. There is competition for the iTunes Music Store, but Apple could argue that the homegrown app stores infringe on its copyright by using modified versions of its software.

It's not a huge shock that App Store competition is popping up; the only surprise is that it took this long to happen. After all, developers are frustrated that excellent programs such as Podcaster are passed up in favor of the latest, greatest novelty app -- then to make matters worse, those same features turned up in an official iPhone update.

While there are a lot of really terrible apps out there that have no place on the App Store -- I won't even begin to tell you about one adult app pitched to TUAW, we do want to remain a mostly family-friendly site -- there are a lot of good software that get turned down because of Apple's stringent developer's agreement. These developers want an avenue to distribute their programs, and homegrown app stores are one answer.

Cydia's Jay Freeman told the WSJ that he has lined up a lawyer in case Apple comes knocking at the door. He may also want to get in touch with the team that represents Psystar ... just in case.

[via Engadget]

Filed under: Apple Corporate, Hardware, OS

Psystar wins a battle, legal war just getting started

Previously in the Apple-Psystar legal battle, the clone maker amended its countersuit to charge that Apple was unfairly leveraging its copyright by binding Mac OS X to Mac hardware.

On Friday, the federal judge assigned to the case ruled that the amendment will be heard by the court, a small victory for Psystar. It's something of a reversal for the company, since they had federal antitrust allegations thrown out in November. Similarly, Psystar's assertion that Apple is in violation of California's antitrust laws was thrown out Friday as well.

Judge William Alsup said, "Psystar may well have a legitimate interest in establishing misuse [of copyright] independent of Apple's claims against it -- for example, to clarify the risks it confronts by marketing the products at issue in this case or others it may wish to develop." This isn't to say that the judge necessarily agrees with Psystar's point, but just that it's legally reasonable enough to be argued in court.

Apple has also not yet revealed its 10 "John Doe" defendants: alleged conspirators who worked on Psystar's technique for loading Mac OS X on non-Apple hardware.

The case will decide whether or not Apple can disallow other hardware makers -- including Psystar -- from including Mac OS X on computers shipped to end users. Last week, a company in Germany claimed that Mac OS X's End User License Agreement didn't apply to them, and is selling Mac clones to customers.

The case is scheduled to go to trial on November 9.

[Via Macworld.]

Filed under: Apple Corporate, Hardware, OS

German Mac clone maker claims it won't face Psystar's legal troubles

Matthias Kremp, of German periodical Der Spiegel, has an interesting story about PearC, "Der PC mit Mac OS X." You don't need Google Translate to figure out what that means, though a mechanical translation of the story is available here.

PearC is offering three flavors of Mac clones in Germany, starting at €499. All of the options are built to order: The Starter edition can be equipped with anything from an Intel Pentium Dual Core E2200 to a Core 2 Duo E7300. The Professional version, though, starts at €1,499, and can be powered by a 3.2GHz Intel Core i7 Extreme processor for an extra €720 -- a processor that Apple does not offer. PearC also offers Blu-Ray optical drives as an option.

All come with the option to install Mac OS X. Kremp notes that PearC's parent company, Hypermeganet, says that since the End User License Agreement (EULA) is sealed inside retail copies of Mac OS X, there's no legal way to review the EULA. If you'll pardon the bad translation, "the restrictions that Apple [has] for its Mac OS X in the EULA [...] in Germany [has] no legal explanation," said Hypermeganet spokesman Dirk Blößl.

"Hypermeganet assumes, therefore, that the product (meaning the Mac clone) in Germany is legal," he says.

Similarly, Psystar, possibly bankrolled by a larger PC clone maker, is defending itself now against charges that it violated Apple's EULA by selling clones with Mac OS X. That dispute is ongoing.

Apple did not return Spiegel Online's request for comment. However, Kremp concluded by suggesting "one may probably assume" that Apple will pursue legal action against the clone maker.

Thanks, Hauke, Holger and Martin!

Filed under: Apple Corporate, Hardware, OS

Psystar continues to be stubborn

Psystar, as you may remember, is the computer company that has begun selling computers with Mac OS X Leopard pre-installed. Of course, they drew the attention of Apple legal right away, but that only caused them to further dig in their heels.

Last month, they challenged Apple's claim to the copyright of Mac OS X, claiming that Apple never registered Mac OS X with the U.S. Copyright Office.

Previously, Judge William Alsup had dismissed federal antitrust claims, which only prompted Psystar to amend its countersuit with all new claims.

Now, they're trying yet another angle. Psystar is claiming the first sale doctrine. Similar to the right you have to buy a book and re-sell it, Psystar says that since they bought legit, retail copies of Mac OS X from Apple and installed them on their computers, they're in the clear. If they want to then sell those computers, that's fine and dandy. Unfortunately for them, they also bought shrinkwrap EULA's which impose license conditions. They don't "own" the software.

Everything else aside, this seems like an awful amount of time, effort and expense just to sell computers. There are less difficult ways to sell Mac OS computers, folks. At this point, you're just being stubborn, Psystar. Let it go.

Back in April, Psystar went public with the first commercial Hackintosh clones. For US$554, they'd send you a Core 2 Duo minitower with Mac OS X pre-installed. In June, they released rack-mount servers with Leopard Server pre-installed in both 1U (starting $1599) and 2U (starting $1999) configurations.

Update: It seems that Psystar has included claims to the first sale doctrine, as some of our readers have pointed out, for a while now. However, we don't feel that it's a "linchpin" of the case -- first-sale hasn't been rejected by the court. More on this seemingly unending story as it develops. Thanks to Alex at World of Apple for the heads-up.

Filed under: Apple Corporate

Psystar bizarrely claims Apple doesn't own copyright for Mac OS X

In what might be the most outlandish claim yet to surface in the case, Psystar now claims that Apple never registered Mac OS X with the U.S. Copyright Office, rendering its copyright invalid, according to InformationWeek. Note that registration isn't a condition of protection, but it is a condition of certain types of infringement actions and damages.

Psystar argues, thus, that since Apple doesn't own the copyright, there's no way for Apple to enforce its claims that Psystar violated its copyright. The claim was filed in U.S. District Court last week.

Although copyright registration number TX0005401457 describes a "computer program" named Mac OS X, it's unclear how Psystar argues this isn't the copyright Apple owns on its operating system. Moreover, contrary to what Psystar appears to argue, copyright is secured automatically in the United States when the work is created, and registration is not a condition of copyright protection (although it can help in fighting infringement). Our Engadget colleague Nilay Patel sums up this latest Psystar legal stratagem as "desperate." Plus, you can file suit while registration is pending, so even if there was some technical defect in the Mac OS X registration, Apple could fix it while pursuing its lawsuit.

If this long shot claim were true, it could undermine Apple's ability to restrict third parties from selling generic clones that run Mac OS X. The back-and-forth arguments are part of a lawsuit Apple originally brought against Psystar for selling Mac OS X with its clones, allegedly in violation of Apple's license agreement. According to InformationWeek, Apple now suspects that a larger company interested in selling Mac OS X-compatible computers is bankrolling Psystar's legal battle.

[Via Engadget.]

Filed under: Hardware, OS

EFi-X USA among latest to sell OS X capable machines

Update: The EFi-X development team contacted Engadget to report that they have nothing to do with "EFi-X USA" and they do not approve of this effort to sell Mac OS X-compatible machines. Classy!

Update #2 (6 p.m. ET):
EFi-X has let Engadget know that it is shutting down EFi-X USA's plans to sell the Millennium machine, stating it refuses to support systems that would directly compete with any brand.

Engadget has reported that EFi-X USA is among the latest companies to announce that they will sell OS X capable machines targeted at high-end users. EFi-X is already known for selling a dongle, shown at right, that allows certain Intel machines to run OS X.

According to the Engadget post, the EFi-X Millennium 4 will contain the following:
  • An overclocked 3.8GHz Core 2 Quad
  • 4GB of RAM
  • A GeForce 8800 GTS graphics card in an Antec P180 case
  • The dongle that fools your machine into installing OS X
The kit itself will cost $1,899USD while the dongle is $199USD. According to Apple Insider, the US version of the EFi-X site will publish purchase details on Monday.

This announcement comes days after Argentina-based OpeniMac announced that it would begin selling Mac clones. Of course, there is still that small case with Psystar still going on.

[Via Engadget]

Filed under: Apple Corporate

With new claims, Psystar tries another angle

You have to admire Psystar's tenacity. Since Judge William Alsup's decision to disallow federal antitrust claims against Apple in Psystar's countersuit, Psystar is amending its countersuit, alleging the misuse of copyright based on different antitrust claims.

It boggles the mind.

Apple is already suing Psystar, of course, claiming that they are violating Mac OS X's End User License Agreement (EULA). Psystar, in its new set of counterclaims, says that Apple is improperly extending the scope of copyright law to include its argument that Psystar broke the EULA.

Psystar claims that -- while admitting that it can't make arguments based on federal antitrust law -- Apple has "leveraged" the power granted them by the Copyright Act and extended it to lock in users post-sale. This, Psystar says, is unlawfully monopolistic, and makes Apple's copyrights unenforceable.

Psystar is also seeking to prove that Apple's behavior is illegal under California's unfair competition statute.

The judge will decide in January if the new claims can be argued in court.

[Via Ars Technica.]

Filed under: Hardware, OS

OpeniMac is now selling Mac clones

The thing about clones is, they keep regenerating. The latest manufacturer we've noticed, Argentina-based OpeniMac, has begun selling Mac clones.

As if using the word "iMac" wasn't adequate bait for Apple's lawyers, who are probably en route at this very moment, OpeniMac has begun selling two computers that run Mac OS X Leopard. The OpeniMac features a 2.53GHz Core 2 Duo processor, support for 2GB of RAM, a 320GB SATA drive, SuperDrive and an ATI Radeon HD PRO video card for $990US.

The OpeniMac PRO sports a 3.0GHz Core 2 Duo processor, support for 4GB of memory, a 500GB SATAII drive, a SuperDrive, and a Nvidia GeForce GS video card for $1,710US. But wait, there's more! They both come with a built in 6-in-1 memory card reader.

As for their looks ... no one said clones had to be pretty.

While the Psystar case waits in legal limbo, it would seem that opportunists are jumping on the bandwagon. Begun, this clone war has.

[Via Engadget]

Filed under: Apple Corporate, Hardware

Apple: Psystar clones part of a larger conspiracy

Earlier this year, manufacturer Psystar began selling computers capable of running Mac OS X Leopard. They've gotten the Mac community's attention, and Apple's. Of course, Psystar found themselves involved with Apple legal shortly after their announcement. That was no surprise, but this week's news kind of is.

Apple is claiming that Psystar is part of a larger group of individuals or corporations. Here's a quote from the recently amended claim:

"...persons other than Psystar are involved in Psystar's unlawful and improper activities described in this Amended Complaint. The true names or capacities, whether individual, corporate, or otherwise, of these persons are unknown to Apple. Consequently they are referred to herein as ... the "John Doe Defendants"...Apple will seek leave to amend this complaint to show the unknown John Doe Defendants' true names and capacities when they are ascertained."

Yikes. What does make sense in light of this accusation, if proven to be true, is Psystar's apparent brashness. When faced with an opponent as high-profile and well-funded as Apple, they've continued to sell machines. Either they're crazy or they've got some serious backbone. We shall see.

[Via World Of Apple]

Filed under: Apple Corporate

Apple piles on Psystar, wins trademark suit

In yet another new facet to this already-draining legal battle surrounding Psystar's sales of non-Apple hardware that runs Mac OS X, Apple has amended its original suit after it discovered "additional information," according to Computerworld.

Apple now claims Psystar circumvented Apple's copyright protection code, in violation of the Digital Millennium Copyright Act. Apple said in its original filing that Psystar was in violation of the Mac OS X End-User License Agreement, but tacked on this additional charge last week.

The amendment also names 10 "John Does" -- persons who were not part of the Psystar company, but broke the copyright protection scheme. Apple doesn't know who they are yet, but plans to name names when its lawyers find out who they are.

In other Apple legal news, Apple won a trademark infringement case in China against New Apple Concept Digital Technology Co., Ltd., based in Shenzen. Judges decided that the Chinese company had a logo too similar to Apple's. New Ap -- aw, eff it -- NACDTCL was ordered to pay 400,000 yuan (≈ US$58,000) to Apple, Inc.

[Via Cult of Mac.]

Filed under: Apple Corporate, Hardware, Apple Financial

Psystar gets countersuit dismissed, case heats up

Yesterday brought about a bit of disappointing news for Mac-clone maker Psystar. Ars Technica is reporting that Psystar's countersuit, which alleged that Apple violated an anti-trust act by tying their operating system to hardware, was thrown out of court. US District Judge William Alsup made the decision, stating that Apple did not, in fact, violate the Sherman Antitrust Act, Clayton Act, or Cartwright Act.

AppleInsider notes that crucial to Psystar's claim was the definition of the "Mac OS Market." Judge Alsup agreed with Apple's right to sell their OS to their customers with the understanding that it may only be used with their hardware.

Last month, Apple and Psystar were ordered to undergo "private arbitration and mediation" by the court. As far as we know, Apple still has a case against Psystar for violating the shrink wrap license and trademarks. Apple has also alleged copyright infringement.

It would appear that Apple has the upper hand at the present time, but it looks like we'll have to wait a bit longer to find out the final verdict.

[via Ars Technica]

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