Hasta La Gadget!

In a partial settlement, Florida startup Psystar has agreed to stop selling Mac clones and pay about $2.7 million to Apple. But the fight is far from over, and Apple won’t see a dime for some time to come.

Apple won’t be able to collect until the appeals run is complete, and sometimes this process can take years. Psystar has said it will appeal to Judge William Alsup’s ruling, which found Psystar guilty of violating Apple’s copyrights.

“We think that Judge Alsup got it wrong,” said Psystar’s chief attorney K.A.D. Camera, in an interview with ComputerWorld late Tuesday. “The effect [of the settlement] is to allow the case to be heard by the Ninth Circuit,” he continued, characterizing the settlement as “extremely favorable” to Psystar.

In addition, Psystar argued to exclude Rebel EFI, a $50 piece of software that the company started selling in October, from any potential injunction. Rebel EFI is downloadable software that enables owners of some Intel PCs to install Mac OS X onto their systems. If Alsup were to allow Psystar to continue selling Rebel EFI, Psystar could simply sell generic PCs and bundle them with Rebel EFI — thus, keep selling Mac clones.

These types of workarounds, however, don’t often work.

“I seriously doubt the court will see any difference between what Psystar has just agreed it did and what it proposes to do in the future with Rebel EFI,” wrote legal blog Groklaw. “Note that this is a contract issue, not a copyright infringement issue. I don’t understand Psystar arguing that there is no DMCA violation if there is an equally untenable contract breach still on the table.”

Also, even though providing a DIY solution would be shifting responsibility onto consumers, it could still be considered contributory infringement, intellectual property lawyer Carole Handler told Wired.com.

“Making the user instead of the company the perpetrator of any violation will not avoid the issue of a new company’s contributory infringement and/or vicarious liability for what it facilitates and enables the user to undertake,” Handler said in an earlier e-mail interview. “This kind of workaround is not a bar to Apple bringing contributory infringement or vicarious liability claims.”

Though Apple and Psystar have agreed to a settlement, it’s still too early to tell what sort of legal precedent this case will set since we await the outcome of the appeals process.

See Also:

• Apple, Mac Cloner Agree to Settle Lawsuit; Psystar Still Kicking …
• Mac Cloner Psystar Guilty of Violating Apple’s Copyright
• Mac Cloner Psystar Sold Fewer Than 1000 Hackintoshes
• Mac Copycat Psystar Gets Ammo to Countersue Apple

Photo: Psystar

A free version of the Gwabbit contact management application for BlackBerry is expected to surface in the BlackBerry App World, and only in the App World, on Tuesday, December 8. pOriginally posted at a href=”http://download.cnet.com/8301-2007_4-10407758-12.html” class=”origPostedBlog”The Download Blog/a/p

In lawsuit related to trade secrets, court denies start-up’s request for a halt to Nook sales, but that doesn’t mean a future injunction is out of the question.

404 Hoverboard!

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CNET/The 404)

There’s so much to do on today’s episode of The 404 Podcast that I’m surprised we were able to fit it all into half an hour–we’ve got 404 listener Leopold’s take on our theme song, Back to the Future/The 404 mash up fan art, and a prize giveaway courtesy of Otterbox!

Before we get into all of that, we have to make fun of the new Karate Kid movie coming out next year starring Jackie Chan and Jaden Smith. Slashfilm just released four official photos from the next film in the franchise, and already we’re seeing glaringly obvious cultural mix-ups. For instance, one of the training scenes features the young Karate Kid practicing on the Great Wall of China. Karate = Japanese, Great Wall = Chinese. Come on!

And speaking of mistakes, the third installment of “Jackass: The Movie” will premiere in 3-D. Don’t get us wrong- The 404 is no stranger to the Jackass movies, but a 3-D view of Chris Pontius’ Speedo we do not need!

A big thanks goes out to 404 listener and music student Leopold, who sent in an amazing new theme song for The 404–we’ll definitely put it into the song rotation, great work, Leopold! Jim, another talented 404 listener, also deserves our appreciation for the Back To The Future hoverboard mash-up you see up there! Judging by the DeLorean in the background, Jim is obviously a big BTTF fan and so are we, so check out the slideshow for more pictures of The 404 hoverboard, and don’t worry–it’s got POWER.

Otterbox Defender case for iPhone 3G/S

(Credit:
Otterbox)

Finally, the good folks at OtterBox hooked it up with 10 of their Defender and Commuter cases, so if you have an iPhone and need a case, leave a comment on this blog and tell us why you deserve to win!

Here’s what you need to do:

• Register as a CNET user. Go to the top of this page and hit the “Join CNET” link to start the registration process. If you’re already registered, there’s no need to register again.
• Leave a comment below. You can leave whatever comment you want. If it’s funny or insightful it won’t help you win, but we’re trying to have fun here, so anything entertaining is appreciated.
• Leave only one comment. You may enter this specific giveaway only once. If you enter more than one comment, you will be automatically disqualified.
• The winner will be chosen randomly. The winner will receive (1) Otter Box case for the iPhone 3G/S. Retail value is ~$50.
• If you are chosen, you will be notified via e-mail. Winners must respond within three days of the end of the contest. If you do not respond within that period, another winner will be chosen.
• Entries can be submitted until Friday, December 4, at 12 p.m. EST. Full rules after the jump.

EPISODE 478

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Originally posted at The 404 Podcast

Despite increasing speculation that Apple will share its iPhone with Verizon in 2010, an analyst believes the partnership would be too complicated to become a reality so soon.

In a note to investors Wednesday, Kaufman Bros. analyst Shaw Wu said Apple and Verizon have similarities that would raise conflicts. Both companies built their success around “customer control,” Wu said.

“Apple runs its own App Store and VZ has aspirations to do so,” Wu said. “Apple controls the media experience with iTunes and VZ with its V CAST service.”

Wu added that Apple gets “very favorable economics” by working with AT&T: He estimates the average selling price for the iPhone through AT&T is roughly $700. By way of comparison, Research In Motion, Verizon’s largest handset supplier, has an average selling price of $340, he said.

Given all these reasons, Wu said a deal between Verizon and Apple would likely take longer than many currently expect. He said it would be more realistic for Apple to make deals with T-Mobile or Sprint before Verizon.

A more realistic ETA for a Verizon iPhone? No sooner than 2012, when networks roll out the next-generation 4G network, Wu said.

“While we believe VZ is likely inevitable at some point when 4G technology rolls out in 2012 or so, we believe Sprint and/or T-Mobile are more willing partners for Apple in helping maintain margins and customer controls,” he said. “From a technology perspective, we believe T-Mobile may have an advantage with a similar 3G UMTS/WCDMA network as AT&T.”

Conflicting reports in recent months have cited analysts claiming a Verizon iPhone is due for launch next year and is already being tested, while others, like Wu, say it’s unlikely.

Given the scarce amount of evidence that a Verizon iPhone is in the works, we’re leaning toward agreeing with Wu. Verizon CEO Ivan Seidenberg told The Wall Street Journal earlier this year that Apple would be more likely to share the iPhone with Verizon once 4G networks were implemented. Verizon will begin deploying its 4G network in 2010. The cellular standard is also called Long Term Evolution (LTE), which many domestic and international carriers plan to use for their next-generation networks as well. For Apple, that should mean more potential iPhone customers and fewer troubles in terms of hardware production.

Though Verizon has said it would begin deploying its 4G in 2010, it would be naive to expect the network to be up and running immediately. Cellular networks take several years to install and optimize; even 3G networks in the United States are far from mature. Therefore, Wu’s estimate of 2012 is reasonable albeit conservative.

Update: Interpret analyst Michael Gartenberg points out to me via Twitter that Wu’s argument is slightly flawed: Verizon doesn’t run the Android Market app store on the Droid, so why would Verizon have a problem with Apple’s App Store? However, Wu is correct that Verizon enjoys an element of customer control, and the company would likely wish to control some aspects of the iPhone OS — which Apple would not allow. Still, Gartenberg and I agree that a Verizon iPhone in 2010 is unlikely for various reasons. The point about 4G not being ready by 2010 is valid.

Via AppleInsider

See Also:

• Verizon iPhone? Don’t Hold Your Breath
• Verizon iPhone Could Arrive Next Year After All
• Verizon iPhone Could be Here Next Year
• Verizon Attacks the iPhone, Hints at Upcoming Droid

Photo: Mac Users Guide/Flickr