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Psystar agrees to pay Apple $2.7M in settlement

post #1 of 88
Thread Starter 
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.
post #2 of 88
On whole, they sold that many computers, of all stripes, to afford the settlement? WOW!

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Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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post #3 of 88
"Even if Psystar could pay damages, the harm to Apple's brand, reputation and goodwill is unquantifiable," Apple said.

Apple who?
post #4 of 88
So long Psystar and good riddance.
post #5 of 88
Merry xmas Psystar! lol
post #6 of 88
Psystar, we hardly knew ye.
post #7 of 88
Quote:
Originally Posted by estolinski View Post

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

Apple who?

Paltrow or is it Martin?
post #8 of 88
The amount of $1,337,500 made me chuckle.
post #9 of 88
Quote:
Originally Posted by estolinski View Post

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

Apple who?

Joe Apple.

Please don't be insane.
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Please don't be insane.
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post #10 of 88
17 months, millions of dollars in damages and attorney fees - all just to figure out what any grade schooler with common sense could tell you? Putting someone else's lunch in your own lunchbox doesn't change the fact that you stole someone's lunch.
post #11 of 88
Pwned.
post #12 of 88
Ouch. Can't help but feel a little bad (even if they were asking for it).
post #13 of 88
Was there ever really another possible outcome to their plan?

Basing a business model on a South Park episode is never a good idea.

1. Steal OSX.
2. ?????
3. Profit!
post #14 of 88
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.

So if they don't pay, can and will Apple "re-file claims of Trademark …"?
post #15 of 88
2.7 Million? If the reports of them only selling under 200,000 units are true, this may be like 80% of their profits.
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--SHEFFmachine out
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post #16 of 88
Quote:
Originally Posted by sheff View Post

2.7 Million? If the reports of them only selling under 200,000 units are true, this may be like 80% of their profits.

That's not 80% of their profits, that's more than the revenue they took in period
post #17 of 88
Quote:
Originally Posted by jglavin View Post

The amount of $1,337,500 made me chuckle.

Is it funny because of some l33t speak thing that I'm missing or just because it's an odd number? If the latter, it appears to be exactly the same as the attorney's fees, so someone just said "ok double that and we'll call it even."
post #18 of 88
Quote:
Originally Posted by anantksundaram View Post

Ouch. Can't help but feel a little bad (even if they were asking for it).

I don’t. It was stupid from day one. I’m surprised that they are getting off so easily. I’d have thought Apple would rather make an example of them and set a legal precedent for illegally copying copyrighted code.


Quote:
Originally Posted by jpellino View Post

Was there ever really another possible outcome to their plan?

Not to most of us. It’s funny how the Psystar support have become less and less as this went on. TeckStud isn’t even supporting their practice against the big bad Apple.


Quote:
Basing a business model on a South Park episode is never a good idea.

1. Steal OSX.
2. ?????
3. Profit!

That is from a South Park episode? I never knew that. Which one?
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #19 of 88
Quote:
Originally Posted by malax View Post

Is it funny because of some l33t speak thing that I'm missing or just because it's an odd number? If the latter, it appears to be exactly the same as the attorney's fees, so someone just said "ok double that and we'll call it even."

It seemed to me that one of the lawyers was trying to be cute with that number
post #20 of 88
..........
post #21 of 88
Quote:
Originally Posted by solipsism View Post

That is from a South Park episode? I never knew that. Which one?

Underpants Gnomes.

Surely taking this to court would have helped set a precedence, rather than putting just one company out of business?

EDIT: jglavin you beat me to the punch!
post #22 of 88
Quote:
Originally Posted by anantksundaram View Post

Ouch. Can't help but feel a little bad (even if they were asking for it).

Psystar to Apple: "I cudda ben a contendah!"
post #23 of 88
Quote:
Originally Posted by ncee View Post

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.

So if they don't pay, can and will Apple "re-file claims of Trademark …"?

That´s the big question? If Psystar´s financial backers makes it possible for them to pay up, all of these trademarks will in some degree be fair game for those who wants to exploit ??? Dell, Microsoft and others could benefit. Or am I wrong?

Was this part of the scheme from day one?
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post #24 of 88
Now that Apple proven that their EULA is valid there is no need to go ahead with the lawsuit and risk uncertainty. Apple can now sue anyone, at least in the US, who tried to sell Mac clones based on their successful arguments in this case. The Florida case will most likely be dismissed.
post #25 of 88
Quote:
Originally Posted by solipsism View Post

I dont. It was stupid from day one. Im surprised that they are getting off so easily. Id have thought Apple would rather make an example of them and set a legal precedence for illegally copying copyrighted code.

Not everyone is as bitchy as you, thank god.
post #26 of 88
"A fool and his money are soon parted" - Thomas Tusser

Or in the case of Psystar - "a foolish company and its money"

Can't help but feel a little sorry for them though.
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A reputation is not built upon the restful domain of one's comfort zone; it is made out of stalwart exposition of your core beliefs, for all challenges to disprove them as irrelevant hubris.- Berp...
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post #27 of 88
Quote:
Originally Posted by anantksundaram View Post

Ouch. Can't help but feel a little bad (even if they were asking for it).


Hey, they used to keelhaul pirates. I think they got out easy, with just a fine. After all, I have a funny feeling somebody else besides Psystar is bankrolling Psystar and paying that bill. A small start-up company can't be that stupid and arrogant. You don't mess with (steal) a big company's source of cash.
post #28 of 88
Freaking Awesome!

Bubye Psystar and your lame ass, ILLEGAL business model. You earned it!

Hurray for Apple, The US Constitution, and the laws that make this the best country on the planet by protecting personal property of the individual or the corporation that created it.

VICTORY!!!!!
post #29 of 88
Quote:
Originally Posted by sheff View Post

2.7 Million? If the reports of them only selling under 200,000 units are true, this may be like 80% of their profits.

More like 768 systems total, by one count:

http://www.computerworld.com/s/artic...ge_clone_sales

Just think of that Return On Investment! SCO must be jealous.
post #30 of 88
Quote:
Originally Posted by sheff View Post

2.7 Million? If the reports of them only selling under 200,000 units are true, this may be like 80% of their profits.

''Under 200,000 units''? Try under 1000.

The fact that Psystar did so poorly that only 768 sales could be confirmed shows that there just isn't that much of a market for PCs running MacOS X.

Hopefully the fact that Psystar couldn't even meet more than 2% of their conservative projection of 70,000 units in 2009 will show the people saying there is a market out there if Apple would license clones to be full of it.
post #31 of 88
Quote:
Originally Posted by Leonard View Post

Hey, they used to keelhaul pirates. I think they got out easy, with just a fine. After all, I have a funny feeling somebody else besides Psystar is bankrolling Psystar and paying that bill. A small start-up company can't be that stupid and arrogant. You don't mess with (steal) a big company's source of cash.

I agree Leonard, the stupidity that is/was Psystar just wreaks of the stupidity that is Steve Ballmer...LOL
post #32 of 88
Quote:
Originally Posted by Leonard View Post

Hey, they used to keelhaul pirates. I think they got out easy, with just a fine. After all, I have a funny feeling somebody else besides Psystar is bankrolling Psystar and paying that bill. A small start-up company can't be that stupid and arrogant. You don't mess with (steal) a big company's source of cash.

In regards to your assertion, what big company actually stands to benefit from this? The main draw of OS X is that it's tied to Apple hardware. Put it on other hardware and it quickly becomes vulnerable to the same problems as Windows.
post #33 of 88
768 units sold.

$2.7 million in damages.

Priceless.


post #34 of 88
Quote:
Originally Posted by Robodude View Post

Underpants Gnomes.

Surely taking this to court would have helped set a precedence, rather than putting just one company out of business?

EDIT: jglavin you beat me to the punch!

Actually the summery judgment did set a precedence: Apple restriction on hardware is protected under the DMCA. This majorly cripples future endeavors and other companies trying the same thing.
post #35 of 88
Quote:
Originally Posted by Maximara View Post

The fact that Psystar did so poorly that only 768 sales could be confirmed shows that there just isn't that much of a market for PCs running MacOS X.

It shows that there isn't that much of a market for PCs running MacOS without Apple's consent. If Apple were to start up an authorized clone program (note: Apple will not do this) now that OS X runs on Intel hardware, it might be a different story. But we'll never know...
post #36 of 88
Quote:
Originally Posted by Zaphodsplanet View Post

I agree Leonard, the stupidity that is/was Psystar just wreaks of the stupidity that is Steve Ballmer...LOL

As bad as Steve Ballmer is I don't think he is that stupid. There was no way Psystar was going to win this thing. Hopefully the Florida judge has a brain and goes summery judgment on Psystar as well and ends this soap opera.
post #37 of 88
Note that all machines with OS X preinstalled are said to be "out of stock" on Psystar's site.
post #38 of 88
Quote:
Originally Posted by Quadra 610 View Post



That is, sadly, funny. ROTFLMAO.
post #39 of 88
I'm like totally boo-hooing. Not.
post #40 of 88
Psystar needs a shrink.

"Change your name. Not such a big deal.
Steve"
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