July 15th, 2008

Confirmed: Apple files suit against Psystar

Posted by Adrian Kingsley-Hughes @ 7:02 am

Categories: Apple, Legal

Tags: District, Apple Inc., Productivity, Manufacturing, Tools & Techniques, Management, Adrian Kingsley-Hughes

LATEST: Apple wants Psystar to snatch back Mac clones from customers!

[UPDATE 07/15 14:15pm PDT: A note to those who think that this suit is about EULAs ... Psystar did a LOT more than breach the terms of the EULA. The company, through its own admission, modified the copyrighted work, then distributed those modifications without license and for commercial purposes. The company also used at least one Apple trademark in its marketing.

If this was just about the EULA, Apple's case might not be that strong (remember, the EULA's never been tested in court), but this goes way beyond the EULA.]

It seems that Apple has grown tired of Mac-clone Psystar and has filed suit against the Florida company at the federal district court for the northern district of California.

The initial imformation came my way via lawyer Jorge Espinosa’s blog (he’s a lawyer who specializes in domestic and international protection of trademarks and copyrights):

Apple, Inc., manufacturer of the well known line of computers and software, filed suit on July 3 in the federal district court for the northern district of California against Florida company Psystar, Inc.   The suit alleges counts for violation of its shrink wrap license, trademark and copyright infringement.

I think that this pretty much spells the end for Psystar. The company has been pushing its luck for some time now, and now the fun is over.

Downloads (PDFs): 

• Case management order
• Docket history

Larry Dignan over on Between the Lines believes that the complaint isn’t available because the case is sealed … we’ll have to wait and see.

[UPDATE 07/15 10:30 am PDT: Seems the complaint is available.  No electronic copy yet. Larry Dignan has posted the gist of it:

"We have the complaint–sorry it’s hard copy–but will post excerpts in an upcoming post. Here’s the short version: Apple is great. Psystar isn’t. Psystar used Apple’s intellectual property and diluted the Apple brand to boot."

Pretty much as expected then.]

[UPDATE 07/15 11:45am PDT: Sam Diaz has information about the complaint here.

"The 16-page document, filed in U.S. District Court in San Francisco, states that, in April of this year, Psystar began selling a computer called OpenMac (later renamed Open Computer), which apparently runs a “modified unauthorized version of the Leopard operating system.” It further alleges that, in June, Psystar began selling rack-mount servers called the OpenServ 100 and Open Serv 2400 - products that again run Leopard."

Not only did Psystar cut in on Apple's desktop business, but also on the server segment - not a good idea. But it gets worse for Psystar:

"At the heart of the complaint, though, is the allegation that Psystar’s products are junk and are harming Apple because they are 'advertised and promoted in a manner that falsely and unfairly implies an affiliation with Apple.'"

Apple is also worried about quality. Here's a quote from the complaint:

"Online commentators have reported that Psystar’s computer is “missing stuff like iLife, Bluetooth. an IR receiver, DVD burning and the ability to update your computer,” is “LOUD, Crazy Loud,” it “breaks the OS’ automatic updates,” and that “video was DOA right out of the box. No signal going to monitor Boot up is moot point as there is nothing to see.” Of Psystar itself reviewers have written “they have no quality control,” “lousy tech support,” and “All I want to do is return the computer and get a refund.” Likewise, it has been reported that Psystar has repeatedly changed location, this its office could not be found and that its first on-line payment processor terminated Psystar’s account."]

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I’ll keep you updated.