Mac clone maker vows to test Apple on OS X licensing terms

Posted:
in Current Mac Hardware edited January 2014
Psystar Corporation, which this week began selling a series of Mac clone systems without Apple's blessing, is determined to challenge the Mac maker in court over the licensing terms for its Mac OS X operating system.



Speaking to InformationWeek, a Psystar employee identified only as Robert said his company sees Apple's end-user license agreement, which prohibits third-party installations of Mac OS X on non-Apple hardware, as a violation of antitrust laws.



"What if Microsoft said you could only install Windows on Dell computers?," he said. "What if Honda said that, after you buy their car, you could only drive it on the roads they said you could?"



As such, the Psystar representative implied that the company is eager to bring the matter before a court, where it believes Apple will have a tough time defending its stringent licensing terms.



As part of its defense, the Miami-based reseller also appears to be accusing Apple of price gouging its customers with each Mac OS X-based computer it sells.



"They're charging an 80 percent markup on hardware," Robert told InformationWeek.



He said Psystar plans to continue selling its $400 OpenMac clone and insisted that the company isn't "breaking any laws."



Ironically, Psystar on Monday evening changed the name of its offering from "OpenMac" to "Open Computer," presumably to avoid charges that it was indeed violating trademark law.
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Comments

  • Reply 1 of 237
    macinthe408macinthe408 Posts: 1,050member
    Hmmm, can someone buy one of these computers and put it through some stringent reliability tests?



    That would be worth its weight in gold if we can glean some significant reliability data on these clones to see if they walk the walk.



    I mean, the ultimate test is whether Apple's approach creates a better computer, and whether its significant markup is worth paying for.



    Ironically, as "Robert" points out, the reason Windows sucks is that you can put the OS on a billion computer systems. I don't know if I want some fly-by-night shop--in Miami, no less!--putting together a Mac made with hardware they deem worthy--I doubt the company is run by anything more than a few good salesman and one guy who was a engineer (sanitation) at one point in his life.
  • Reply 2 of 237
    Hope they have a large piggy bank for all the lawyer expenses. They want to test the value / legality of the EULA, that is going to cost some money to bring to a court room.
  • Reply 3 of 237
    Psystar will lose. Plain and simple.
  • Reply 4 of 237
    Quote:
    Originally Posted by macinthe408 View Post


    Hmmm, can someone buy one of these computers and put it through some stringent reliability tests?



    That would be worth its weight in gold if we can glean some significant reliability data on these clones to see if they walk the walk.



    I mean, the ultimate test is whether Apple's approach creates a better computer, and whether its significant markup is worth paying for.



    Ironically, as "Robert" points out, the reason Windows sucks is that you can put the OS on a billion computer systems. I don't know if I want some fly-by-night shop--in Miami, no less!--putting together a Mac made with hardware they deem worthy--I doubt the company is run by anything more than a few good salesman and one guy who was a engineer (sanitation) at one point in his life.



    If these computers aren't reliable, they won't sell. This is a perfect test of, as you say, "whether Apple's approach creates a better computer, and whether its significant markup is worth paying for." Right now, Apple has a monopoly on OS-X-running computers. Apple's hardware doesn't have the same competition that Dell's hardware has. Dell has to make a reliable product at a competitive price to whatever HP, Sony, etc., are putting out. That's one of the main reasons PC's are cheaper than Macs. Economics has drive the price down.



    The problem is that Dell, HP, etc. have to work with Microsoft to resolve technical issues. If it works, this Psystar Corp. will have a tough go with no technical support from Apple if there are compatibility issues with their hardware.



    p.s. Slamming people by location is not a sign of maturity. There are lots of intelligent people in Miami.
  • Reply 5 of 237
    buckbuck Posts: 293member
    Quote:

    They're charging an 80 percent markup on hardware



    Well of course they do! Would you rather they charged $600 for a copy of Leopard?
  • Reply 6 of 237
    Psystar had better talk to a really good lawyer before making too many public statements. Right now they are walking on some rather thin ice and may well find themselves over their head.



    Since OS X is the property of Apple Pststar has no right to interfere with Apple's right to establish the terms of use - specifically the rights to invest heavily in OS X in order to make the Mac a desirable hardware product for customers. I can see a lot of court action on this one if they continue - it's cheaper to simply close the business down and stat flipping burgers.
  • Reply 7 of 237
    Quote:
    Originally Posted by initiator View Post


    Psystar will lose. Plain and simple.



    I am not a lawyer by any means but I am sure Apple will hit them with everything they can. They are not going to want Dell, HP and others doing the same, they have to put the foot down and make these guys an example.



    What I am sorry for is the non-techie customers that buy this system based on the broad advertisement and end up with a BRICK when Apple releases an upgrade.



    Specially the kids putting their money together to get a Mac and then see this opportunity, they jump and get hurt. I don't like kids getting hurt.



    Joe average consumer is not going to understand what will happen or how to fix it. They are not going to go to forums and blogs to learn how to hack the system back into health.



    Not only that but because the systems wont be upgraded, they will not get the security patches and as such they will be vulnerable while the real Mac community is nice and secured. I see a whole BotNet made from these unsecured systems and everyone saying that Macs are vulnerable.
  • Reply 8 of 237
    virgil-tb2virgil-tb2 Posts: 1,416member
    The whole thing is really kind of a scam anyway, as if you add the cost of OS-X onto the $399 price that keeps getting quoted it immediately doesn't look like such a good deal. Add the price of the missing iLife suite and the package is over $600 dollars all of a sudden, (more expensive than the entry level mini.)



    Since this is basically a "hillbilly" computer (or aimed at that market spec), service and support are probably not needed, but if you add those back in as well, the *actual* cost of this thing is far above what you would pay Apple for comparable gear.



    As an option for home hobbyists it's interesting perhaps, but as a value proposition for a "cheap Apple computer" it just doesn't add up. Anyone that thinks they are going to be getting a "deal" will be severely disappointed. Those that are buying a junky "throwaway" computer box so they can tool with OS-X for laughs will be the only ones happy with these computers.
  • Reply 9 of 237
    boogabooga Posts: 1,082member
    Quote:
    Originally Posted by frugality View Post


    If these computers aren't reliable, they won't sell. This is a perfect test of, as you say, "whether Apple's approach creates a better computer, and whether its significant markup is worth paying for." Right now, Apple has a monopoly on OS-X-running computers. Apple's hardware doesn't have the same competition that Dell's hardware has. Dell has to make a reliable product at a competitive price to whatever HP, Sony, etc., are putting out. That's one of the main reasons PC's are cheaper than Macs. Economics has drive the price down.



    The problem is that Dell, HP, etc. have to work with Microsoft to resolve technical issues. If it works, this Psystar Corp. will have a tough go with no technical support from Apple if there are compatibility issues with their hardware.



    p.s. Slamming people by location is not a sign of maturity. There are lots of intelligent people in Miami.



    I'm looking to get a new professional-grade machine soon. Out of curiosity I've been pricing Mac Pro's against Dells. The Dells don't even seem to be in the same ballpark in price-- they're way, way higher. A vanilla $2800 2.8GHz 8 core Mac Pro equivalent, or anything close to it, costs at least $500 more at Dell's store. Am I doing something wrong? Everyone seems to claim Dells are cheaper but I don't see it.



    Now yes, in the sub-$1000 market you can get a LOT more on the PC side (where's the mini with a video card slot?) But for most of Apple's products they don't seem to be out of line from what everyone else is charging.
  • Reply 10 of 237
    Are they just stupid or what? At $400 a pop, where in that price are they actually feigning to pay Apple anything for the us of the OS. Even using their own pathetic "what if" arguments, someone would have been paid for their product before it could be used, even if it was within a locked-in environment.



    Without their payment for the license, it's just plain old theft.



    I hope they have fun in jail...
  • Reply 10 of 237
    These people have got to be kidding.



    Apple owns OSX...just as Microsoft owns Windows. Each company has a right as part of a free trade society to license and sell its products to whomever and however they choose.



    In no way does this even come close to anti-trust laws. Apple is not inhibiting other companies from manufacturing computers...simply manufacturing computers with the software that Apple owns. I hope Psystar doesn't decide to spend too much money just so this can get thrown out of court.



    The lack of education on "Robert's" part is simply mind boggling. Companies are not required to allow other people to use their products. If they own it, they own it. Software is nothing more than written "words" and images. If this goes through, then we should all be free to copy every printed word/image/musical notation etc. that we own, then have the freedom to distribute freely.



    My word...just when I thought I had seen everything, this comes along.
  • Reply 12 of 237
    dmzdmz Posts: 5,775member
    Um, guys, these machines must be priced at, or very close to the cost of hardware. I doubt there is much profit to be had.



    I'd be interested to see if this is blowback from Megashaft's Vista damage -- FUD to harass Apple.
  • Reply 13 of 237
    nagrommenagromme Posts: 2,834member
    I just don't see them actually getting a court to force Apple to do all of the following...





    * Allow installation on non-Apple systems. (Remember that retail OS X is essentially an upgrade--not an original version. The original version came with the Mac. Look at how Windows pricing is different for an upgrade vs. original install. Apple would charge more--just like Microsoft--for a full version. Now technically the upgrade can install all by itself, and that's great--it's the same when I bought a Photoshop upgrade--but what you're buying is still an upgrade to something you bought already.)



    * SUPPORT people who have issues with non-Apple hardware.



    * TEST every patch and new feature on non-Apple hardware.



    * Add code and bloat to their OS to support non-Apple hardware.



    * DELAY every patch or feature or OS Apple ever creates, to accommodate the above.



    * Take the heat when an OS X feature only works right on Apple hardware. (Imagine the cries of sabotage!)



    * PAY for all that support and development time out of Apple's pockets, when they didn't make the hardware profit, only the OS cost.



    * Do all of the above for every other little box maker once the precedent was set.






    ...forever and all time! And I'd hate to see what happened to the pace and quality of Apple's innovation if they did. (That's a burden that Microsoft can't escape--and I'm glad my chosen OS doesn't share those issues.)



    I like CHOICE in computing, and one choice I like to have is to have hardware and software designed TOGETHER as a whole. Those who don't want that have other choices... but this choice has proven to have real benefits. I don't see a court making that choice impossible.
  • Reply 14 of 237
    nacnudnacnud Posts: 20member
    Apparently they are not about to test the EULA



    From engadget - Psystar says rumors of its demise are greatly exaggerated, still selling Open Computers
  • Reply 15 of 237
    gqbgqb Posts: 1,934member
    Quote:
    Originally Posted by frugality View Post


    Right now, Apple has a monopoly on OS-X-running computers.



    Not to put too fine a point on it, that's a nonsensical statement.

    'Monopoly' is a legal term that's been badly misused lately.

    Saying Apple has a Monopoly on OS/X computers is akin to saying that Coke has a monopoly on, well, Coke.

    Well, yeah... so?

    Apple OWNS OS/X... that's not a monopoly.



    BTW, before anyone jumps in the the "BUT I OWN MY OS... I CAN LOAD IT ON ANY HARDWARE I WANT!" rant, no, you don't own your OS... you license it.
  • Reply 16 of 237
    solipsismsolipsism Posts: 25,726member
    Before anyone mentions that their business address is currently at a residence note that is not an uncommon practice for a new company. Especially one that is internet based and doesn't require a nice office space to show off to customers. If they succeed?and I don't see how they can if they go after Apple instead of just selling a machine that has the proper HW for OSx86 KEXTs?they will surely move into a large area and most likely change their address. Though they could have gotten a POBOX, but they probably didn't think of it.



    Quote:
    Originally Posted by Buck View Post


    Well of course they do! Would you rather they charged $600 for a copy of Leopard?



    The only 80% markup I see when compared to other 3rd-party products is on RAM. And when you compare the whole of the parts to a similar machine by Dell the markup seems to completely vanish.



    PS: Do you think they planned this ahead of time? They are rivaling Apple in their ability to generate free press.
  • Reply 17 of 237
    wnursewnurse Posts: 427member
    Well one thing they could do is sell a computer capable of running Mac OSX but not install the operating system.. ie, leave it up to users to install operating system. Since they are not selling a Leopard, they cannot violate the EULA. Apple cannot dictate a company cannot make compatible hardware. That would be an interesting test. Would apple then go after individual users for violating the EULA?. What a PR nightmare that would be (similar to the PR nightmare the RIAA have when they sue individuals). It would be expensive too.. they'd have to find out who bought the computer, no easy task especially if PsyStar tells them to go jump of a building when apple request customer info (and i don't think there is any court that would force one company to hand over it's customer info, which is considered competitive information, to another).



    By installing the operating system themselves, they are opening themself up to apple legal. Maybe they will argue that they make compatible mac hardware (which is legal) and that they are contracted to install the operating system on the hardware by the user (maybe shift the responsibility to the customer) but then refuse to provide customer information. Hmm.. not a lawyer but i wonder how exactly they will defeat Apple in court.



    I think the smart thing to do is make the mac compatible hardware and let the customers violate the EULA.



    This is only possible because apple runs on intel of course.. PsyStar could then claim that the machine could be used to install unix, or windows or mac and poor innocent souls, they had no idea the user would violate the EULA of apple. Hey, how can they be at fault if the user does something that stupid??(wink, wink).
  • Reply 18 of 237
    derevderev Posts: 64member
    Quote:
    Originally Posted by initiator View Post


    Psystar will lose. Plain and simple.



    Unfortunately for Psystar (and any sofware user mac or windows) EULAs are evil E.V.I.L.

    By clicking on the agreement, which you have to do to open the installer, or in some cases just by opening the wrapper to be able to even read the EULA, you agree to its terms. So, unless the courst want to open up a can of worms with the big layers, they will throw Psystar out on their ear.
  • Reply 19 of 237
    derevderev Posts: 64member
    Quote:
    Originally Posted by initiator View Post


    Psystar will lose. Plain and simple.



    Unfortunately for Psystar (and any sofware user mac or windows) EULAs are evil E.V.I.L.

    By clicking on the agreement, which you have to do to open the installer, or in some cases just by opening the wrapper to be able to even read the EULA, you agree to its terms. So, unless the courst want to open up a can of worms with the big layers, they will throw Psystar out on their ear.http://forums.appleinsider.com/image...ies/1oyvey.gif
  • Reply 20 of 237
    g_warreng_warren Posts: 713member
    This could be an interesting development. I'll be watching the legal wrangling with interest, although as a small startup they will require quite a budget to pursue this litigation fully.



    I'm sure every mac user would welcome some competition to drive down prices. There are of course compatibility issues, and Mac OS not running as Mac OS does, but Apple could simply provide the OS X product and stay well away from supporting third party products (graphics cards etc), leaving this to others.



    There are interesting competition law points here. If we assume that the relevant market is 'Computer hardware capable of running Mac OS X' then clearly Apple is in a dominant position with 100% market share. It is not completely unforseeable that Apple could be forced to licence OS X or remove the relevant paragraphs from the agreement.



    Of course, one could argue that in that case, Nokia should be releasing its software so that Sony Ericsson users can use it etc.



    A few complaints to national competition authorities might raise some interesting results.
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