From Wikipedia, the free encyclopedia Psystar Corporation
Psystar Corporation
Psystar Corporation conservative projections, Psystar told investors it would
sell 70,000 computers in 2009, 470,000 systems in 2010,
and 1.45 million machines in 2011. The firm’s aggressive
growth model, however, put those numbers at 130,000,
1.87 million, and 12 million during 2009, 2010, and 2011,
respectively.”[10]
Industry Computer hardware · Computer software
Consumer electronics However the reality was quite different. “ ‘Psystar
produced incomplete financial records,’ Dr. Matthew
Headquarters 10475 NW 28th Street, Doral, Florida, USA Lynde, who works as an economics consultant for
Cornerstone Research, said in a declaration during trial.
Psystar Corporation was a Miami, Florida based company After digging through invoices, purchase orders and oth-
which sold "Open Computers". These computers, first an- er documents, Lynde was able to pinpoint only 768 sales
nounced in April 2008, had the option to be pre-installed of machines with Mac OS X pre-installed. Psystar did not
with Mac OS X Leopard, making them the first commer- challenge Lynde in his analysis of financial records. [10]
cially distributed "hackintosh" computers.[1] In Novem-
ber 2009, a U.S. Federal District Court ruled Psystar vio-
lated Apple’s copyrights in doing so.[2] Some of Apple’s Legal issues
"trade secrets" officially entered to public view as a re- The end-user license agreement for Mac OS X forbids
sult of the lawsuit in January 2012.[3] third-party installations of Mac OS X, and Psystar’s Mac
clone is in violation of that agreement.[11] However, Psys-
Rebel EFI tar argues that Apple’s prohibition against third-party
installations will not hold up in court: "What if Honda
Rebel EFI was a product from Psystar that helped users said that, after you buy their car, you could only drive
to install Mac OS X on "regular" x86 computers. A trial it on the roads they said you could?"[11] Psystar says it
version was free of charge, but the full version cost mon- will continue to sell the Open system, adding "We’re not
ey. It has been alleged that Rebel EFI was not an original breaking any laws."[11]
work of Psystar, but was based on an open source pro- On July 3, 2008, Apple filed a lawsuit against Psystar
gram called boot-132.[4] in the District Court of Northern California.[12]
On August 28, 2008, Psystar Corporation responded to
Early concerns Apple’s claims of copyright infringement, and also coun-
tersued Apple for anti-competitive practices, monopolis-
Early efforts to research Psystar shortly after their an-
tic behavior, and copyright misuse.[13][14] This counter-
nouncement of a Mac clone in April 2008 resulted in
suit was dismissed on November 18, 2008.[15]
questions regarding the company’s very existence and
On November 27, 2008, Apple claimed "Psystar violat-
just how legitimate they were.[5][6] Several addresses
ed the Digital Millennium Copyright Act (DMCA) by dodg-
were provided (five in four days) and Psystar was taking
ing copy-protection technologies Apple uses to protect
credit card numbers but not processing them because
Mac OS X. "Apple employs technological protection mea-
their processing company, Powerpay, had revoked Psys-
sures that effectively control access to Apple’s copyright-
tar’s account "for three primary reasons: product/ser-
ed works," the revised complaint read. "Defendant has
vices not as represented in application, sales volumes
illegally circumvented Apple’s technological copyright-
grossly exceeded, no address verification utilized";[7] and
protection measures. [...] Specifically, Apple charged
there were claims that their website had malware on
Psystar with acquiring or creating "code" that "avoids,
it.[6][8]
bypasses, removes, descrambles, decrypts, deactivates or
The developers of the OSx86 Project claimed that
impairs a technological protection measure without Ap-
Psystar did not get permission to use their code and then
ple’s authority for the purpose of gaining unauthorized
reworked their license so that it specifically forbids com-
access to Apple’s copyrighted works."[16] This brief re-
mercial usage.[9]
vealed that Apple uses methods it considers protected by
As part of Apple’s discovery process it was revealed
the DMCA to prevent MacOS X from being installed on
that in 2008 Psystar presented a slide presentation in
non-Apple hardware.
hope of raising $24 million from investors. “Under its
1
From Wikipedia, the free encyclopedia Psystar Corporation
On December 22, 2008, Psystar opened the claim that tract, violation of the Digital Millennium Copyright Act,
Apple "is prohibited from bringing action against Psystar additional damages and attorneys fees in the California
for the alleged infringement of one or more of the plain- lawsuit. The payments were deferred until all Psystar’s
tiff’s copyrights for failure to register said copyrights appeals are exhausted.[28]
with the copyright office as required" by law.[17] On December 15, 2009, the judge in the California ac-
On February 5, 2009, Psystar won a round as a modi- tion issued a permanent injunction barring Psystar from
fied abuse of copyright claim against Apple under Judge manufacturing, distributing, or assisting anyone with
William Alsup, opening the door to a potential nullifica- any sort of device or technology "that is primarily de-
tion of the Apple-only hardware rule in Apple’s EULA. [18] signed or produced for the purpose of circumventing a
In April 2009, Apple alleged that Psystar was with- technological measure". The ruling applies to all current
holding financial information relating to their company and future versions of Mac OS X and Judge Alsup made
and that "at the deposition regarding Psystar’s revenues, it clear that "Psystar will be selling Rebel EFI at its peril,
profits, assets, and liabilities (including investors, and risks finding itself held in contempt if its new ven-
lenders, or other sources of financial support), taken on ture falls within the scope of the injunction."[29] The rul-
March 20, 2009, Psystar’s CEO and founder Rudy Pedraza, ing also requires Psystar to destroy all of its equipment
the person designated by Psystar to testify on this topic, and material that it used in the circumvention of Apple
would not answer basic questions about Psystar’s finan- technologies by December 31.[30]
cials." [19] Psystar countered that they have never pro- On January 16, 2010, Psystar announced that they
duced monthly, quarterly, or yearly statements, that would be appealing the lawsuit put in place on December
they lost some documents when moving premises, and 15.[31]
that they have produced the requested information As of August, 2010, Psystar’s web site, store, and con-
where available.[20] tent delivery network are unreachable.
On May 26, 2009, Psystar filed for Chapter 11 bank-
ruptcy. Regardless, the company continued to sell their
computers with Apple’s Mac OS X installed on them.[21]
See also
Apple challenged that Psystar was using Chapter 11 • Macintosh clone
bankruptcy to stall the case, and in June 2009, the court
lifted the stay on Apple’s lawsuit.
On July 2, 2009, Psystar announced that they would
References
emerge from Chapter 11 protection.[22] [1] Psystar Releases Mac Clone
As of August 12, 2009, debtor Psystar’s bankruptcy [2] Order Re Cross Motions for Summary Judgement,
was dismissed with prejudice with stipulations by Florida Apple v. Psystar, No. C 08-03251 WHA
Judge Mark that no Chapter 11 bankruptcy can be filed [3] [1]
for 12 months and that there will be no stay of any pend- [4] OSNews.com
ing cases if Psystar seeks Chapter 7 bankruptcy. "One ef- [5] Koman, Richard (2008-04-16). "Psystar: Hoax or
fect of the judge’s orders is that Psystar won’t be able to fraud?". ZDNet Government. ZDNet.
use bankruptcy as a stall tactic against Apple—that trial http://government.zdnet.com/?p=3758. Retrieved
is set to begin in January. But the other effect of the order Sept 14, 2008.
is that Psystar can be sued by its creditors. ’All of Psys- [6] ^ Koman, Richard (2008-04-17). "Psystar mystery
tar’s creditors are now free to sue in any court of compe- adds up to phishing scam". ZDNet Government.
tent jurisdiction to get their debts paid,’ an attorney fa- ZDNet. http://government.zdnet.com/?p=3761.
miliar with bankruptcy told The Mac Observer. That in- Retrieved Sept 14, 2008.
cludes Apple, which Psystar may owe for copies of Mac [7] Koman, Richard (2008-04-17). "PowerPay statement
OS X it bought from the company."[23] on Psystar". ZDNet Government.
On August 20, 2009, California Judge Alsup ordered http://government.zdnet.com/?p=3763. Retrieved
Psystar to pay $5,000 of Apple’s legal fees.[24] December 12, 2009.
On October 8, 2009, the court ruled that Psystar was [8] Smith, Stevie (2008-04-18). "Psystar and its Mac
not entitled to Apple’s profit margin data. [25] clone accused of being Phishing scam". The Tech
On November 13, 2009, the court granted Apple’s mo- Herald. http://www.thetechherald.com/
tion for summary judgement and found Apple’s copy- article.php/200816/749/Psystar-and-its-Mac-
rights were violated as well as the Digital Millennium clone-accused-of-being-Phishing-scam. Retrieved
Copyright Act (DMCA) when Psystar installed Apple’s op- Sept 14, 2008.
erating system on non-Apple computers. A hearing on [9] Patel, Nilay (2008-04-16). "OSx86 Project not too
remedies was set for December 14.[26][27] happy with Psystar either". Engadge.
On December 1, 2009, Psystar agreed to pay Apple http://www.engadget.com/2008/04/16/
$2.7 million for copyright infringement, breach of con-
2
From Wikipedia, the free encyclopedia Psystar Corporation
osx86-project-not-too-happy-with-psystar-either/. Inc. http://www.macobserver.com/tmo/article/
Retrieved Sept 17, 2008. psystar_files_bankruptcy_stalls_apples_case/.
[10] ^ Keizer, Gregg (2009-11-25). "OSx86 Psystar Retrieved 26 May 2009.
promised investors huge clone sales; But clone [22] "Chapter 11, exit stage right". Psystar Meta Update.
maker sold just 768 systems, says Apple’s Psystar. http://psystar.cmail1.com/T/ViewEmail/
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http://www.computerworld.com/s/article/ 7576075A56BBAC6D9A8E73400EDACAB4. Retrieved
9141473/ Sept 12, 2009.
Psystar_promised_investors_huge_clone_sales. [23] Foresman, Chris (2009-08-12). "Psystar bankruptcy
Retrieved November 27, 2009. dismissed: out of the frying pan, into the fryer".
[11] ^ McDougall, Paul (2008-04-14). "Mac Clone Maker Ars Technica. http://arstechnica.com/apple/
Psystar Vows To Challenge Apple EULA". news/2009/08/psystar-bankruptcy-dismissed-out-
InformationWeek Blog. United Business Media. of-the-frying-pan-into-the-fryer.ars. Retrieved
http://www.informationweek.com/blog/main/ Sept 13, 2009.
archives/2008/04/mac_clone_maker.html. [24] Foresman, Chris (2009-09-01). "Psystar, fined $5K,
Retrieved 19 November 2008. files Snow Leopard suit in Florida". Ars Technica.
[12] Fried, Ina (2008-07-15). "Apple sues clone maker http://arstechnica.com/apple/news/2009/09/
Psystar". CNET News. CBS Corporation. psystar-fined-5k-files-snow-leopard-suit-in-
http://news.cnet.com/ florida.ars. Retrieved Sept 12, 2009.
8301-13860_3-9991572-56.html. Retrieved 19 [25] "Court rules that Psystar is not entitled to Apple’s
November 2008. profit margin data". Edible Apple. 2009-09-01.
[13] Psystar: Apple v. Psystar - Answer & Counterclaim http://www.edibleapple.com/court-rules-that-
Filed psystar-is-not-entitled-to-apples-profit-margin-
[14] Psystar beats Apple to Blu-ray on OS X computer data/. Retrieved Sept 12, 2009.
[15] Krazit, Tom (2008-11-18). "Psystar antitrust claim [26] Elmer-DeWitt, Philip (2009-11-14). "Apple wins
against Apple dismissed". CNET News. CBS clone suit". CNN Money.
Corporation. http://news.cnet.com/ http://brainstormtech.blogs.fortune.cnn.com/
8301-13579_3-10101581-37.html. Retrieved 19 2009/11/14/apple-wins-clone-suit/. Retrieved
November 2008. November 15, 2009.
[16] Keizer, Gregg (November 30, 2008). "Apple adds [27] Keizer, Greg (2009-11-15). "Apple Wins Court
DMCA charge to lawsuit against Psystar: It accuses Victory Over Mac Clone Maker Psystar". Pc World.
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9121798/ [28] Hughes, Neil (2009-12-01). "Psystar agrees to pay
Apple_adds_DMCA_charge_to_lawsuit_against_Psystar. Apple $2.7M in settlement". AppleInsider.
Retrieved 2009-10-07. http://www.appleinsider.com/articles/09/12/01/
[17] Apple Failed To Copyright Mac OS X, Psystar Claims psystar_agrees_to_pay_apple_1_3m_in_settlement.html.
[18] Keizer, Gregg (February 8, 2009). "Mac clone maker Retrieved December 1, 2009.
wins legal round against Apple: Psystar can argue [29] Foresman, Chris (2009-12-16). "Psystar gets
Apple abused copyright laws, judge rules". permanent injunction, legal warning from judge".
computerworld.com. Ars Technica. http://arstechnica.com/apple/
http://www.computerworld.com/s/article/ news/2009/12/psystar-gets-permanent-
9127579/ injunction-legal-warning-from-judge.ars.
Mac_clone_maker_wins_legal_round_against_Apple. Retrieved December 16, 2009.
Retrieved 2009-11-06. [30] "Apple wins total, permanent injunction against
[19] Jade, Kasper (May 1, 2009). "Apple says Psystar Psystar". December 15, 2009.
holding back info in Mac clone legal case". http://www.groklaw.net/
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articles/09/05/01/ [31] Bryan Chaffin (2010-01-15). "Psystar Officially Files
Notice of Appeal in Apple Lawsuit". The Mac
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[21] Gamet, Jeff (2009-05-26). "Psystar Files Bankruptcy, Retrieved 2010-02-05.
Stalls Apple’s Case". TMO Scoop. The Mac Observer,
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From Wikipedia, the free encyclopedia Psystar Corporation
External links
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Categories:
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• Companies established in 2008
• Computer companies
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