Psystar agrees to pay Apple $2.7M in settlement

First on AI: Clone Mac maker Psystar has agreed to pay Apple $2.7 million in damages in a deal that will likely bring the company's sale of unauthorized computers preinstalled with Mac OS X to an end.

In a joint filing from Apple and Psystar Corporation in a San Francisco court Tuesday, Psystar agreed to pay Apple $1,337,500 in damages over copyright infringement, breach of contract, and violation of the Digital Millennium Copyright Act. Additional damages and attorneys fees amounted to another $1,337,500, bringing the total to $2.675 million. Psystar had already lost those complaints in a summary judgment from Judge William Alsup in November.

In exchange for the payout, Apple has agreed to not refile claims of trademark infringement, trade dress infringement, trademark dilution, state unfair competition, and common law unfair competition -- items that were not ruled on by Alsup in his summary judgment.

The agreement was signed by attorneys James G. Gilliland, representing Apple, and K. A. D. Camara, counsel for Psystar.

Both parties have also agreed that the terms of the deal will not be argued in favor of or against the venue in the ongoing, separate lawsuit filed by Psystar against Apple in Florida. In that suit, Psystar has alleged that Apple is engaged in "anticompetitive attempts to tie Mac OS X Snow Leopard to its Macintosh line of computers."

But a separate filing from Psystar Monday indicates that the Florida corporation hopes to continue to sell its Rebel EFI product. The $50 application, released in October, allows individuals to install Mac OS X on unauthorized third-party machines. It is compatible with Apple's latest operating system, Mac OS X 10.6 Snow Leopard. That issue will likely be contended by Apple, which previously alleged that the Rebel EFI product amounted to "trafficking in circumvention devices."

At question is Psystar's ability to pay the $2.7 million in damages. The company filed for bankruptcy earlier this year, only to emerge from Chapter 11. But Psystar's total assets, according to court filings, are said to be less than $50,000. Apple, in seeking a permanent injunction to prevent Psystar sales, told the court last week that it believed the company would be unable to pay any damages.

"Even if Psystar could pay damages, the harm to Apple's brand, reputation and goodwill is unquantifiable," Apple said.

The beginning of the end for Psystar came in November, when Alsup ruled in favor of Apple on multiple counts in a summary judgment. Had the two parties not come to an agreement, trial was set to start in January 2010 over the remaining issues.

What I find strange about this settlement agreement is that Apple proposed a $2.1 million dollar settlement to Judge Alsup... and Psystar is proposing (and that is all that this so-called “settlement” is is a “proposal” by Psystar, just as were Apple’s proposed injunctions introduced last Thursday) a $2.7 Million dollar settlement. Why are they offering $600,000 MORE than Apple was asking for?
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Could be something wacked such as they have a friendly bankruptcy lawyer in mind who will only take a case 2.5 mil and above. Any Psystar bankruptcy is in FL and my guess is the bankruptcy courts are wired, are an old boys club same as in NY. Not as bad but still a court where all the lawyers and judges and flunkies and bailiffs and recorders know each other..... It’s a small club

You are a cynic, aren't you, Dennis?.

The FEDERAL bankruptcy judge IN Florida has ruled that they CANNOT re-enter bankruptcy because they misused bankruptcy to attempt to delay the California copyright infringement trial. When the Bankruptcy Judge ruled that the copyright case had to be resolved before the bankruptcy case could continue—because it was a major liability that needed to be a known amount before any other debtors could be paid—and Psystar moved to dismiss the bankruptcy, stating blatantly that the bankruptcy no longer served their purpose of delay, the judge dismissed the case with prejudice.

The probate courts can be even more inbred/clubby/corrupt
All depends on the locale.

As far as the Pedrazzo brothers and cousin I would not underestimate them. They’ll be back though in want form no one can say. It might have nothing to do with Apple. These guys are geniuses with a competitive streak. If they had sued Apple first the action would have been on their home turf in Florida with courts giving them a better shot at a fair outcome

These guys are geniuses with a competitive streak. If they had sued Apple first the action would have been on their home turf in Florida with courts giving them a better shot at a fair outcome

"These guys are criminal geniuses with a competitive streak. If they had sued Apple first the action would have been on their home turf in Florida with courts giving them a better shot at a fair outcome"

There, fixed it for you. And, Dennis, they got a "fair" outcome. Just because YOU don't like it doesn't mean it isn't fair.

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