Psystar Loses Lawsuit To Apple

{ Posted on 7:10 PM by The Repellant }
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Apple has asked a federal court for a permanent injunction against Mac clone maker Psystar. The order would prohibit Psystar from selling Mac knock offs, which the court has already ruled violate Apple's copyright.

Apple had alleged Pystar of the following
  • Copyright infringement: According to Apple, Psystar modified and redistributed OS X without a license, so straight copyright law applies.

  • Inducing breach of contract: Apple says Psystar "advised, encouraged, and assisted others" in violating the EULA.
  • Common law unfair competition: This is basically the same as the state unfair competition claim, only based on a different set of doctrines.

  • Contributory and induced copyright infringement: by building a business model around the knowing copyright infringement of its customers, Psystar is probably liable for contributory copyright infringement
  • Trade dress infringement: This one is pretty interesting, actually -- Apple says that the Mac OS X user interface is well known to consumers and has become associated with Apple to the point where it is protectable trade dress -- and that Psystar infringed on Apple's trade dress rights when it shipped Open Computers that contained OS X

  • Breach of contract: This is the EULA violation claim. Contrary to what you may have read elsewhere, EULAs in general have been tested in courts many times and have been held enforceable in several states, including Florida, where Psystar is located

  • Trademark dilution: Dilution is a special trademark protection reserved for "famous" brands -- Apple undoubtedly qualifies.

  • State unfair competition: Apple says Psystar violated California law by infringing its copyrighted works, specifically the California Business and Professions Code.
A California judge has ruled in favor of computer maker Apple. Judge William Alsup ruled Apple’s copyright infringement claim was valid and rejected the basis of Psystar’s countersuit, that Apple was misusing its copyright claims. The full ruling was posted on the legal news blog Groklaw.

“Psystar cites no decisions to reasonably support its argument that its modifications do not amount to a derivative work; whereas, Apple points to decisions showing that such deletions, modifications, and additions to software result in an infringing derivative work,” Alsup ruled. “In sum, Psystar has violated Apple’s exclusive reproduction right, distribution right, and right to create derivative works. Accordingly, Apple’s motion for summary judgment on copyright infringement must be granted.”


The battle follows another development showing Apple’s desire to keep Mac software on Mac-branded products: In October, Apple's iTunes 9.0.2 update, prevented Palm Pre users, once again, from syncing their smartphones with iTunes

Apple's cash reserve might not even be dented in this lawsuit but the same cannot be said about Pystar who was hoping to sell about 10 million mac clones the coming year












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