Apple Set to Propose Damages in Psystar Case

Mac Observer ^ | November 23rd, 2009 | by Jeff Gamet

[Swordmaker]

Apple is set to files its brief on Monday detailing the damages and injunction details it wants to see imposed on Psystar for building and selling unauthorized Mac clones.

Apple filed a lawsuit against Psystar in Northern California several months ago claiming the small PC maker was violating the Mac OS X end user license agreement, and that it was violating the Digital Millennium Copyright Act with the steps it used to install the Mac operating system on PCs. Psystar claimed that it should be allowed to build and sell PCs with Mac OS X pre-installed and that Apple is overstepping its bounds by blocking companies from selling Mac clones.

Both companies filed motions for Summary Judgement, and in the end Judge William Alsup ruled in favor of Apple and against Psystar.

In its motion for Summary Judgement, Apple argued that the licensing agreement for Mac OS X states that the end user owns the disc the software ships on, but only licenses the use of the operating system. Since Mac OS X is licensed instead of owned, users are bound by Apple's terms that prohibit installing and running the software on non-Apple hardware.

In its Summary Judgement filing, Psystar claimed that because users own the media Mac OS X ships on, they own the operating system as well. Owning the OS gives them the right to use it as they see fit, and in this case that includes installing it on Mac clones.

Apple is expected to ask for an injunction blocking Psystar from selling any PCs with any version of Mac OS X installed.

"It will be Apple's opening argument to get Judge Alsup to impose an injunction that will cover Snow Leopard, Psystar's Rebel EFI, and any future conduct by Psystar that infringes Apples copyright in OS X and violates the DMCA, even though those items of software and Psystar's future misconduct were not part of the case," an attorney familiar with this type of case told The Mac Observer.

After Apple files its brief, Psystar will have an opportunity to respond.

Psystar hasn't been issued an injunction blocking it from selling Mac clones yet, so the company is still offering its PCs with Mac OS X pre-installed along with the Rebel EFI product through its Web site. Rebel EFI lets users install Mac OS X on any PC.

At one point, Psystar said it was taking on Apple with "guns blazin'." It looks, however, like the company failed to take aim with any of those shots.

[Swordmaker]

Apple to tell Judgewhat it wants done to Psystar... PING!

Mac Ping!

If you want on or off the Mac Ping List, Freepmail me.

[dennisw]

Apple can try to break a butterfly on a wheel but there are hundreds of incipient clone makers waiting in the wings. Apple is a victim of its own success. The more demand for Apple machines....The more demand for the cheaper and better (in some cases) clones and hackintoshes. My local Craig’s list abounds with bush league clone makers

So score one Pyrrhic victory for the Job’s gang

[Star Traveler]

Now that we’ve had your post for comic relief, we move on to the discussion of success having many fathers and a whole lot of copycats... LOL...

Isn’t it great that Apple is so successful with their products and their “bottom-line” — even during this “Great Depression/Recession (whichever way you put it...)... :-)

[dayglored]

Dennis, Apple tolerates individual Hackintoshers, always has and always will. They only went after Psystar because the clowns got big enough, and arrogant enough, to publicly stick their finger in Apple's eye. Stupid move. Their shadow investors should have been less eager, perhaps. Anyway...

> ...there are hundreds of incipient clone makers waiting in the wings....My local Craig’s list abounds with bush league clone makers...

Really? Mine isn't. Individuals, a few. Small companies? None. So, sorry, I don't believe you. Please identify, oh, half a dozen of the small companies you see on your local Craigslist who are manufacturing and selling Hackintoshes. Should be easy, since there are "hundreds" -- so please choose six and post their Cragslist URL. I'm sure there are plenty of FReepers who would appreciate the tip.

> Apple is a victim of its own success. The more demand for Apple machines....

"Victim"? I'd say they're doing just fine.

Again with your "marketshare is everything" mantra. When will you get it through your head that Apple's VERY SUCCESSFUL business model is based on being a niche vendor??? If Apple ever reached 25% marketshare they would have to stop being Apple -- they'd become just another PC vendor, suffering along with crappy margins. They're not that stupid.

[dennisw]

http://losangeles.craigslist.org/search/?areaID=7&subAreaID=&query=hackintosh&catAbbreviation=sss

Whole lotta hackintoshing going in LA per Craig’s list. Some are selling Mac clones a la Psystar

[Star Traveler]

dayglored, you were saying to dennisw ...

Dennis, Apple tolerates individual Hackintoshers, always has and always will.

And I think that's fine for individuals to experiment on their own machines/computers. If they like to do it and they want to fiddle with the code and twist their machine around in circles (LOL...), I would not begrudge them the fun of doing that.

But, the fact of the matter is that the vast majority of the consumer public doesn't want something you have to hack and fiddle with, but simply something that works and works insanely great... :-)

Also, Apple knows that a big corporation is not going to come inside someone's home and tell them what do to on their computer themselves (as in hacking your own machine). That would be stupid.

But, when someone turns that into a business and starts making money off what Apple has done (or any other corporation has done with their own copyrighted material and/or patents, licenses, plus riding on their trademarks) -- then they're gonna hear from Apple and their lawyers -- and rightfully so.

[dennisw]

Hackintosh activity spotted on eBay too
I thought the Jesse Job’s gang was on the job! You snooze you lose....sales to clone makers and hackers

http://desc.shop.ebay.com/i.html?_nkw=hackintosh&_sacat=0&LH_TitleDesc=1&_trksid=p3286.m270.l1313&_dmpt=US_CSA_MC_Shirts&_odkw=hackintosh&_osacat=0&_rdc=1

Heaven forfend!-—>>
Clone makers and hackintoshs on NYC Craig’s list
http://newyork.craigslist.org/search/?areaID=3&subAreaID=&query=hackintosh&catAbbreviation=sss

[dennisw]

But, the fact of the matter is that the vast majority of the consumer public doesn't want something you have to hack and fiddle with, but simply something that works and works insanely great... :-)

That's why you got to Psystar or a Psystar clone. To buy a clone of a Psytar clone of a Mac

I saw some cloner in LA the other day. Forget his name...dude seemed to be from India

[dennisw]

Again with your "marketshare is everything" mantra. When will you get it through your head that Apple's VERY SUCCESSFUL business model is based on being a niche vendor??? If Apple ever reached 25% marketshare they would have to stop being Apple -- they'd become just another PC vendor, suffering along with crappy margins. They're not that stupid.

Apples are for the masses and the jackasses.
This is why Apple will lose the clone wars
Because its stuff is too high priced
You in effect pay a hardware tax to the Jesse Jobs gang
You cannot stop diffusion of technology.
History proves this

Capitalism is controlled anarchy and Apple cannot control the anarchy it unleashed with its business model of skimming the cream off the top. This outdated model is doomed for an epic FAIL. The winners? The clone makers and it will start in foreign nations where Apple can't enforce jack. It will then spread from the periphery to the center where it will start with people "smuggling" in foreign made laptop (MacBook) clones then eventually people importing the same from abroad on an individual basis

There will be so many clone makers worldwide that there will be deadly clone wars called "Lord of the Clones" similar to "Lord of the Flies"

[Swordmaker]

Whole lotta hackintoshing going in LA per Craig’s list. Some are selling Mac clones a la Psystar

From your Craig's Listings:

Nov 24 - BUILD YOUR OWN HACKINTOSH / 3.6 Core i7 / 12 GB RAM / GTS 250 NVidia - $400 - (CULVER CITY) img < Click on it... get:

"This posting has been flagged for removal"

I wonder why?

[SunkenCiv]

Psystar hasn't been issued an injunction blocking it from selling Mac clones yet, so the company is still offering its PCs with Mac OS X pre-installed along with the Rebel EFI product through its Web site. Rebel EFI lets users install Mac OS X on any PC.

It's a rebel and they'll never ever be any good. ;')

[dayglored]

> http://losangeles.craigslist.org/search/?areaID=7&subAreaID=&query=hackintosh&catAbbreviation=sss Whole lotta hackintoshing going in LA per Craig’s list. Some are selling Mac clones a la Psystar

Dennis, I'm disappointed in you. Did you think I wouldn't follow that link? Let's see what it showed, in its entirety:

Nov 24 - Dell Mini 9 new 32 ssd 7 or Leopard - $350 - (Burbank) -- A one-off Hackintosh. Not a "maker", an individual.

Nov 24 - MAC PRO CLONE 3.6 GHz Intel Core i7 / 12 GB RAM / 1 GB NVIDIA GTS 250 - $2500 - (LOS ANGELES) -- Someone offering that the buyer should "build your own computer] and I'll install OS X...", which is offering a service, not a computer.

Nov 23 - Mac G5 Dual 2.0 - $200 - (Santa Monica) -- That's a Macintosh, not a Hackintosh. G5, duh.

Nov 23 - bronze g1 sim unlocked with warranty and a 4 gb sd card 160 obo - $160 - (lincoln heights) -- a cell phone. Only came up because the poster is looking for how to do a Hackintosh, not because he has one for sale.

Nov 22 - Computer Service "No Matter How Small!!! (323)822-8522 CALL TODAY!!! - (LA, Hollywood , Glendale SF Valley etc.) -- Computer service, not a Hackintosh maker.

Nov 20 - Power Mac 2.0 NOT WORKING parts or case for a project - $100 - (Woodland Hills ) -- a Macintosh, not a Hackintosh.

Nov 17 - ////\\\\WINDOWS 7////\\\\WINDOWS 7///\\\WINDOWS 7///\\\ - $200 - (FULL SERVICE INSTALLED ON YOUR PC) -- Windows.

Nov 17 - WINDOWS 7 Install... WINDOWS 7 "Full Installs or Upgrade" - $200 - (LA> Hollywood> Beverly Hills> Valle...) -- Windows.

Nov 17 - //////\\\\\\??COMPUTER PROBLEMS?? (323)822-8522,//////\\\\\\ - (~~~Computer Repair~~~Computer Repair~~~Computer Repair~~~) -- Windows.

Nov 21 - WANT A MAC FOR WAY LESS $$$ LOOK!!! HACKINTOSH!!! - $450 - (Beaumont) -- An individual who appears to offer "custom-built" Hackintoshes for sale.

So let's see, instead of "hundreds", there is one guy who claims to do "custom-built" Hackintoshes, one guys selling his one-off Hackintosh, and one guy who says he'll install OS-X on your computer for you.

Nothing that looks anything like an up-and-coming Psystar. The one guy who claims to have more than a one-off has crappy photos of his (one) laptop and (one) desktop. Maybe he's an entrepreneur waiting to happen, but it looks pretty lame to me.

Let's look at the total results of your New York Craigslist URL:

Nov 24 - Dell Mini 9 Netbook 2 gb RAM - $180 - (Downtown) -- OH NOEZ -- It's actually a Linux (Ubuntu) box. Search found it because it claims to be "compatible for Hackintosh upgrade", not because it IS one. D-uh, Dennis.

Nov 12 - I Repair & Upgrade PC's and Macs-Windows/MacOS/Linux - (Lake Hopatcong) -- A service shop who mentions that he'll work on Hackintoshes. Not sell them.

Sorry, dude, that's a wipe out. If you think this is a crowd of cloners waiting in the wings, you're high and need a new dealer with better drugs.

[dayglored]

> Apples are for the masses and the jackasses... This is why Apple will lose the clone wars... Because its stuff is too high priced... You in effect pay a hardware tax to the Jesse Jobs gang... You cannot stop diffusion of technology... History proves this... Capitalism is controlled anarchy and Apple cannot control the anarchy it unleashed with its business model of skimming the cream off the top. This outdated model is doomed for an epic FAIL. The winners? The clone makers and it will start in foreign nations where Apple can't enforce jack. It will then spread from the periphery to the center where it will start with people "smuggling" in foreign made laptop (MacBook) clones then eventually people importing the same from abroad on an individual basis There will be so many clone makers worldwide that there will be deadly clone wars called "Lord of the Clones" similar to "Lord of the Flies"

Wow, what an incoherent rant. Didn't I tell you a few minutes ago to get a dealer with better drugs? Let's see...

> Capitalism is controlled anarchy and Apple cannot control the anarchy it unleashed with its business model of skimming the cream off the top. This outdated model is doomed for an epic FAIL.

Uh huh, and that's why there are no high end automobile manufacturers, just low-end clone makers, churning our Yugos for the masses. Right. You're out of your flipping mind.

> There will be so many clone makers worldwide that there will be deadly clone wars...

How long do you propose I will have to wait until this happens? Months? Years? Decades????

Care to make a $100 bet? Set the date for this to happen, and we'll wait for it. Put some money where your mouth is, Dennis -- on condition that the winner donates it to FR. I'm fairly sure JimRob would accept it and validate the donor back to us.

[dennisw]

Can’t make that bet because the “Clone War” can happen any time in the next ten years. For all I know you may have to barter gold or silver to buy a computer in a few years. Or we may have a new Amero currency

[dennisw]

Uh huh, and that's why there are no high end automobile manufacturers, just low-end clone makers, churning our Yugos for the masses. Right. You're out of your flipping mind.


How are your high end darlings BMW, Jaguar and Mercedes doing these days? I rest my case
Apple is doing well only because it got the kids hooked via the ipod craze
You know darn well that most Apple buyers are buying more computer than they will ever need
The Jesse Jobs gang has them under a spell

Black Friday is two days from now.
There are tons of laptop deals from $300-$500 on up
Plenty of netbook deals too
NewEgg will have a six cell Acer netbook for $230 I believe (tell your friends since Apple has no netbooks)
All the above are perfectly adequate for 85% of computer users and at a half or a third of the price for an Apple laptop. 
Minimum price is usually $999 for Apple laptops

On Black Friday the cheapest Apple laptop will be $999 with a pathetic 13.3" screen
Windows laptops will have 15" screens on Black Friday and for $299 on up
You've been punkt! By the Jesse Jobs gang!

[dayglored]

> ...most Apple buyers are buying more computer than they will ever need...

I would say that they're buying what they -will- need as their computer needs grow over the lifetime of the computer. I know very few computer owners, WindowsPC or Mac, who complain -- after two years of use -- that their computer is overpowered, or has too many features. Macs retain much more of their value over the years, than PCs; that's well documented. The reason is that (in general) they start out better, and keep going better. Someone who buys a cheap PC may get "what they need today" but in a year, the odds are their needs have increased and the cheap PC no longer meets them. But AT TIME OF INITIAL SALE the cheap PC is a good match for most users' needs, hence the fact that PCs have most of the marketshare.

> All the above [cheap PCs] are perfectly adequate for 85% of computer users...

That's exactly right -- we agree on that. And that figure is PRECISELY why I maintain that Apple will always be a niche player, and that if they reach 25% marketshare they will have to stop being Apple and will just be another clone maker.

Apple has about 5% of the worldwide market. They could increase to about 3x what they are now, and be doing quite well. That's your figure (100%-85%=15%).

Thank you for validating my argument so well.