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May 26

Mac Cloner Psystar Files for Bankruptcy

Posted in: Apple, Hacks, Mods and DIY, Law, lawsuit, MacOsX, Today's Chili

Mac cloner Psystar has filed for bankruptcy, effectively stalling Apple’s legal case against the Florida-based startup.

Filed with the federal courts in Florida, the voluntary petition for bankruptcy protection temporarily puts Apple’s lawsuit on hold while the bankruptcy court begins proceedings.

Apple in July 2008 filed suit against Psystar alleging copyright, trademark and shrink-wrap license infringement. Psystar opened its Mac clone business in April, selling a PC hacked to run OS X Leopard.

Apple strictly forbids its operating system to be installed on anything but Apple products. The corporation alleges Psystar is violating the Mac OS X end-user agreement, which states, “You agree not to install, use or run the Apple Software on any non-Apple-labeled computer, or to enable others to do so.” The corporation also alleges Psystar is committing copyright infringement by installing OS X on non-Apple hardware.

Psystar did not immediately respond to requests for comment. However, the bankruptcy petition suggests Psystar’s investors may have withdrawn from financially backing the company. The bankruptcy filing also implies that Psystar likely cannot afford a legal team to win its battle against Apple.

Winning the lawsuit would be a large victory for Apple, as it would set a legal precedent enabling the corporation to easily squash other existing Mac cloners.

The Florida court on June 5 will hold a hearing revealing Psystar’s equity creditors, meaning if there any large entities backing the Mac cloner (e.g., Microsoft), we’ll know who they are very soon.

Suggestion of Bankruptcy [PDF via MacObserver]

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Image courtesy of Psystar