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By Tom Nelson, About.com Guide to Macs

Apple Sues Psystar, Maker of Mac Clones

Tuesday July 15, 2008

There weren’t any warning shots, no cease-and-desist letters that we know of. On July 3, cutting straight to the chase, Apple filed suit against Psystar in the U.S. District Court in San Francisco, citing copyright infringement, breach of contract, trade dress infringement, trademark infringement, and unfair competition.

Three items seem to be at the heart of the conflict. First, the breach of contract appears to apply to the installation and shipping of OS X on a non-Apple product. The EULA (End User License Agreement) for OS X states that it can only be installed on a single, Apple-labeled computer.

The other core issues, the ones I believe are more important and more likely to persuade the court, are the infringement and unfair competition complaints. Apple maintains that Psystar’s products are of dubious quality, and are “advertised and promoted in a manner that falsely implies affiliation with Apple.”

In the lawsuit, Apple states that “Psystar’s actions have been committed with the intent to damage Apple and to confuse and deceive the public.” Apple further states that due to Psystar’s actions, Apple is suffering harm and erosion of goodwill.

Apple requested a jury trial. In the meantime, Psystar has yet to respond, but in the past has stated that it believes Apple’s EULA terms constitute a monopoly and are prohibited under U.S. law. Even if this were true, and Psystar could prevail on the breach of contract issue (which I believe is quite a reach), it would most likely not be able to persuade the court not to find for Apple on any of the infringement or unfair competition charges.

Unless Psystar has a backer with deep pockets to finance it through a long, drawn-out court case, I think the company will come to the table and terminate its entire Mac clone product line. Will Psystar survive on its other products alone? Probably not, so this is likely the end of Psystar as well as its Mac clones.

Comments

July 15, 2008 at 8:12 pm
(1) Reidofloch says:

I recently took my G5 mac to the Glasgow Apple Store to have a power pack replaced and a noisy main fan repaired. The power pack was replaced at a cost of about £75 ($US150) but the fan was not repaired because the Store told me that the fan sensor was broken and as it was located on the motherboard I would have to purchase a new motherboard costing in excess of £700 ($1400). I decided at that price I could put up with a noisy fan.
On returning home I checked the Psystar web site and found that my £700 would just about buy their G5 equivalent computer but unfortunately their machine was not available in the UK.
I find it incredible that an Apple trained mechanic is unable to, or perhaps not allowed to, replace a 50 cent sensor on a motherboard.
Apple need a bit of competition particularly in the UK where they have been ripping off their customers for years. Apple must be running very scared of the competition and its less expensive products.
I feel sorry for Pystar because I doubt if they have the finance to take on Apple in a legal battle.

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