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Psystar enters Chapter 11

Psystar enters Chapter 11

The Psystar "Open Computer" range of Mac OS X-based hackintoshes look in jeopardy as the company files for Chapter 11 protection.

Mainstream hackintosh distributor Psystar may have finally found a way to get Apple's legal eagles off its back: by filing for bankruptcy protection.

As reported by CNet yesterday, the creator of hackintosh systems it dubbed Open Computers – white-box x86 PCs running Apple's Mac OS X – has filed for Chapter 11 bankruptcy protection in the Florida federal court.

Having faced a barrage of attacks from Apple for what it saw as the unlicensed sale of its intellectual property, Psystar's dream of an open computing platform that would offer a cheaper alternative to those wanting a Mac OS X-based system would appear to be floundering.

Citing mounting debts that have reached the not-inconsiderable heights of $250,000 (£157,000) – mostly owed to shipping companies and the company's law firm, along with the rather more pressing concern of back taxes owed to the IRS – the company hopes that by filing for bankruptcy protection it can weather the storm and come back fighting.

In the filing, Psystar places the blame firmly on “the decrease in consumer spending” as the global economic slowdown continues to make its presence felt – and not, purely as an example, on waking the sleeping giant of Apple's crack legal forces. This, coupled with creditors tightening up their terms and demanding faster payments along with rising parts costs, has left the company unable to “turn a significant profit in each sale.

It's not all doom and gloom for the company, however: as part fo the filing Apple's ongoing copyright infringement suit against the company will be suspended until the filing is resolved – after which time it will continue as normal, offering the company little more than a temporary reprieve.

Do you believe Psystar should be allowed to continue selling its range of hackintosh systems, or is Apple well within its rights to hound the company into bankruptcy? Share your thoughts over in the forums.

10 Comments

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harveypooka 27th May 2009, 15:10 Quote
I guess it was on the cards.

I'd attempted to review their products for a while, but they resisted. I spoke to their PR guy, who I'm pretty sure then pretended to be someone else on the phone.

I do wonder about the people who have purchased machines and could potentially have bricks or machines that can't be updated.

Any ideas on how support will continue?
quack 27th May 2009, 15:13 Quote
There probably won't be any.
azrael- 27th May 2009, 15:35 Quote
It always amazes me how Apple is allowed to bully the competition and noone really speaks out about it. What Apple is trying to do is hang on to a sort of monopoly due to "reasons" that sound pretty hollow in my ears.

Perhaps one should be thankful that Apple thus far hasn't commandeered the counterfeit police and their steam roller to demolish the "infringing product".
Saivert 27th May 2009, 16:09 Quote
well... isn't Mac OS X considered a firmware for their special computer machines?
It's not a FREE operating system for use on any platform. This is the license.
Whatever Psystar found that made it legal to sell these machines I want to know.

I'm sure I would be sued if I tried to sell my own router hardware with Cisco Router firmware on it.
harveypooka 27th May 2009, 16:22 Quote
Apple prevent you installing their OS on anything other than Apple hardware. I think Psystar tried a variety of ways to get around it. They were also selling the OS preinstalled, which I think violates EULA stuff.

The courts thus far have upheld Apple's side of things.
Bob1234 27th May 2009, 18:23 Quote
Quote:
Originally Posted by Saivert
well... isn't Mac OS X considered a firmware for their special computer machines?
It's not a FREE operating system for use on any platform. This is the license.
Whatever Psystar found that made it legal to sell these machines I want to know.

I'm sure I would be sued if I tried to sell my own router hardware with Cisco Router firmware on it.

Wasnt it on the basis that "a Mac is just a bog standard Intel based PC" and that the version of OS X supplied was a perfectly legal copy?

Its not really like making your own router and putting someone elses firmware in it, its exactly like buying a preinstalled PC and reinstalling Linux on it because you dont want Windows.
wafflesomd 27th May 2009, 19:21 Quote
I'd like them to see them remain in business.

I can't stand how much apple charges for their crap.

lol http://store.apple.com/us/product/MA631Z/B?fnode=MTY1NDA5OQ&mco=MjE0NTg5Nw
HourBeforeDawn 27th May 2009, 21:03 Quote
see that was Apples plans all along, get a smaller company involved in a drawn out lawsuit until they go bankrupt so no matter the out come of the case, Apple wins.... and to think people say M$ is a monopoly ha....
Faulk_Wulf 27th May 2009, 22:06 Quote
Wait, isn't OSX an ... OS?
I can put Ubuntu on anything. (Almost literally, not even traditional computers.)
I can but Windows on any machine that can run it.
If I buy a legit copy of OSX, why can't I put it on any machine that can run it?
I get that very few machines CAN run it, but if I'm willing to go through the hassle, and have a legit license? My time, my money.

Its like any other mod. If you can buy the parts and have the time to make it all work together-- why should they be allowed to stop you? Shouldn't a EULA clause that prevents such fair use be seen as anti-competative and as an attempt to monopolize a sector of the market?
wuyanxu 28th May 2009, 00:21 Quote
Apple's EULA is the problem, the court have no choice but to follow that agreement. IMHO the EULA should be thrown out of the window, their OS is great, but why do we have to use their crappy genuine hardware?
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