Psystar enters Chapter 11

May 27, 2009 // 1:40 p.m.

Tags: #apple #bankruptcy #chapter-11 #copyright #credit-crunch #hackintosh #lawsuit #open-computer #psystar

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.

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