Psystar goes broke

The defiant crusade of a small, unlicensed Mac clone maker against Apple may soon come to an end. According to The Mac Observer, Psystar Corporation has filed for Chapter 11 bankruptcy protection.

One could attribute the move to the bad economy, the fact that Psystar continues to sell Mac clones at bargain-basement prices, and the hefty legal fees required to battle Apple in court. However, The Mac Observer says the filing might also mean Psystar’s backers "have pulled out, signaling they see Apple as the clear winner."

As we’ve reported before, Apple believes shadowy third parties are involved with the Floridian start-up—perhaps larger firms testing the legal waters to see if they, too, could one day offer white-box Macs. We’ll soon find out if that’s true. The report goes on to say the names of Psystar’s equity creditors will come to light at a hearing on June 5.

That said, the bankruptcy filing should also throw a wrench in Apple’s legal proceedings. The Mac Observer explains, "All legal actions involving the PC maker are automatically put on hold while the bankruptcy court begins its proceedings. The judge overseeing the case will, however, most likely lift that stay within a few months, allowing Apple’s case to start moving forward again."

Comments closed
    • DrCR
    • 13 years ago

    Has Ferrari ever sued anyone for using a Ferrari engine in anything other than a Ferrari?l[

    • derFunkenstein
    • 13 years ago

    ah, yes, that famous decimonopoly, where they rule up to 10% of the market with an iron fist.

    • khands
    • 13 years ago

    It has the monopoly of selling its product of… um… Apples.

    • LedCop
    • 13 years ago

    Monopoly? How so? Like Ferrari has a monopoly on all cars with Ferrari engines?

    • squngy
    • 13 years ago

    Here you are:

    If MS trully made the best OS for everybody then there wouldn’t be any demand for ‘hackingtoshes’.
    Hence MS is to blame for this situation arising in the first place 😛

    • ssidbroadcast
    • 13 years ago

    wait–wait–I GOT IT! Guys! Guys! It’s just a /[

    • ImSpartacus
    • 13 years ago

    Yeah, we’ll have to wait for OSXI…

    • burntham77
    • 13 years ago

    Huzzah, sir.

    • blacksteel
    • 13 years ago

    who cares if it’s speculation, I think MS is one of the investors in Psystar. – derFunkenstein

    Why would MS want to give Apple an advantage if OSX was set free. If OSX was set free then it would be a direct competition to Windows and threaten it in the market. Sorry I just don’t believe your conspiracy theory.

    • blacksteel
    • 13 years ago

    Apple is probably popping Apple flavored Champagne and Apple Martini’s about this news. Yes… we can continue our monopoly empire and continue to give our customers less choices.

    • UberGerbil
    • 13 years ago

    But creating greater legal uncertainties (or limitations) wrt software licensing is not in Microsoft’s best interests either.

    • UberGerbil
    • 13 years ago

    Actually, Microsoft sold their $150M investment in AAPL at a profit, but nothing like the return they would’ve gotten if they’d waited a few more years.

    • blerb
    • 13 years ago

    darn, I was hoping I could use my summer money to buy one as my current mobo is incompatible

    Though, I could just buy a compatible mobo for less..

    • derFunkenstein
    • 13 years ago

    If it wasn’t for anti-trust investigations, I’d be willing to bet they’d have sold that investment when Apple was trading at $200/share.

    • derFunkenstein
    • 13 years ago

    It makes sense to me because Apple has a higher margin on hardware than they do software. They don’t have nearly the resources dedicated to OS X that Microsoft does to Windows, but they also don’t have nearly the volume. 90% of the market is still 90% of the market.

    It’d make Apple hurt a little. :p

    • SomeOtherGeek
    • 13 years ago

    No, no… You have it backwards, MS is Apple’s backer.

    • ssidbroadcast
    • 13 years ago

    Yeah, briefly:

    /[

    • UberGerbil
    • 13 years ago

    So the question is: did the shadowy backers call it quits because legal discovery in the case had reached the point where they would be unmasked? Or did the shadowy backers never exist except in the fervid imaginations of the RDFers? Or was this all just a greenmail attempt, and Apple called their bluff?

    • UberGerbil
    • 13 years ago

    Have a look at the respective entries on Wikipedia

    • UberGerbil
    • 13 years ago

    Not the OSX version, certainly.

    • UberGerbil
    • 13 years ago

    That doesn’t make a lot of sense, since wider availability of OSX on cheaper hardware is hardly to Microsoft’s benefit.

    Dell or HP, on the other hand… (or how about…Intel?)

    • stmok
    • 13 years ago

    Almost like their “financial backing via proxy” of SCO…

    • stmok
    • 13 years ago

    I’m not familiar with the American system in regards to bankruptcy…Chapter 7 vs Chapter 11?

    • derFunkenstein
    • 13 years ago

    who cares if it’s speculation, I think MS is one of the investors in Psystar.

    • ssidbroadcast
    • 13 years ago

    btw, all jokes aside, Chapter 11 is the /[

    • MadManOriginal
    • 13 years ago

    Well if you can figure out how to tie this to MS without pure speculation then have at it!

    • _Sigma
    • 13 years ago

    well played

    • moshpit
    • 13 years ago

    I do. Regularly.

    • Fighthouse
    • 13 years ago

    Why can’t we blame both?

    • ssidbroadcast
    • 13 years ago

    Does this mean Duke Nukem Forever won’t get released??

    • Peffse
    • 13 years ago

    Wait, it’s no longer cool to blame Microsoft for everything?

    • jackaroon
    • 13 years ago

    If they sold laptops, I’d buy one today.

    • willyolio
    • 13 years ago

    i was kind of hoping they would win somehow. it would have provided many more years of entertainment.

    • bittermann
    • 13 years ago

    Notch up another win for the Apple Empire…

    • MadManOriginal
    • 13 years ago

    Well that’s a shame. I’ll blame Apple because it’s the cool thing to do.

    • khands
    • 13 years ago

    Hehehe, and they’re down. Oh well, it was an entertaining run while it lasted.

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