Psystar a Computer Maker Sued by Apple Files For Bankruptcy

Psystar Corp., a maker of computers that are capable of running Apple Inc.'s Macintosh operating system, filed for bankruptcy protection less than a year after being sued by Apple for copyright infringement.

Psystar ComputersPsystar Computers  blamed its bankruptcy filing on the downturn in consumer spending amid the world-wide financial crisis which, by the way, the Boston Globe said we only had 3 more months left of before we pull out of the longest running recession since the great depression. A representative for Psystar couldn't immediately be reached for comment.

In its Chapter 11 petition, the company cited assets of less than $50,000 and liabilities ranging between $100,000 and $500,000. Psystar is based in Doral, Fla., but only sells its computer over the Internet.

The company now has its hands in proceedings in two courts on opposite ends of the country: the U.S. Bankruptcy Court in Miami, where it sought Chapter 11 protection last Thursday, and the U.S. District Court in San Jose, where it is facing a lawsuit from Apple.

Apple sued Psystar just three months after the company began selling its "Open Computer" with Max OS X in late April 2008. Apple claims that Psystar is in violation of the software license agreement protecting Apple's Leopard operating system, and notes that Psystar's product was even originally called the "OpenMac."

Psystar has denied that it produces computers that run a "modified, unauthorized version of the Leopard operating system," and said it only called the product OpenMac for a few hours.

In court documents, Psystar said that its model applies not just to the Mac operating system, but to various Microsoft and Linux operating systems as well. With its lower price points - a computer with 2.5 gigahertz processor starts at $599 - Psystar said its products are an attractive alternative to computers from mainstays like Apple.

In court papers, the company said it plans to emerge from Chapter 11 protection with a "strong and effective plan to make an increasingly higher profit and still provide the consumer with the product that they have grown to enjoy and trust."

Piper's picture
Competition is essential to a free market


Too bad Mac seems so hellbent on blocking any form of competition. That is what has made the PC realm so successful is the competition. Looks like psystar has some nice computers to offer. I suppose now they are prevented from running Mac OS which really is just freebsd ( a variant of Unix).

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