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Apple accusing Psystar of withholding information

updated 04:25 pm EDT, Fri May 1, 2009

Psystar holding back?

Psystar is failing to follow proper legal procedure, Apple has claimed in a petition to a federal court judge. The Mac cloner is specifically accused of interfering with the discovery phase of a current lawsuit, by refusing to produce balance sheets, monthly statements and other financial documents, although it has provided some cost and revenue receipts. "Moreover," states Apple attorney James Gilliland, "at the deposition regarding Psystar's revenues, profits, assets and liabilities...Psystar's CEO and founder Rudy Pedraza, the person designated by Psystar to testify on this topic, would not answer basic questions about Psystar's financials."

The two companies are engaged in a legal war over Psystar's Open Computers, which come preloaded with Mac OS X Leopard. Apple's end-user licensing agreement expressly forbids installing the software on third-party hardware, but Psystar has launched a counterattack to Apple's suit, charging the company with unfairly extending copyright and blocking competition.

During the March 20th deposition, Pedraza is said to have been unable to answer questions some 90 times, regardless of whether they were about sales, costs, profits or prices. Gilliland further accuses Psystar of failing to hand over any customer purchase or order documents, despite having sold Open systems as far back as April 2008. Some vendor invoices have been shared, though only ranging from December 2008 through to March 2009.

Gilliland is therefore asking the court to order Psystar to turn over financial documents, and also provide a second expert capable of testifying on the company's state. Discovery ends June 26th, and the case should go to trial on November 9th, should no settlements be reached.

by MacNN Staff



  1. chas_m



    Psystar ...

    ... will not be around much longer. Clever lawyers can extend a fraud for quite a while (witness SCO) but in the end it all comes crashing down.

    I pity the fools who actually bought one of those things.

  1. Bobfozz

    Joined: Dec 1969


    Legally now

    Apple has everything going in its favor. Asking those questions in a deposition is normal due diligence behavior... what is they have not kept any records? A really good lawyer is worth what he gets paid. Surely Apple pays their lawyers well to handle "fraud" cases like this one.

  1. climacs

    Joined: Dec 1969



    they have no financial statements to offer because they didn't keep any such records. It would fit Psystar's fly-by-the-seat-of-the-pants MO.

  1. Karango

    Joined: Dec 1969


    re: pity the fools

    I actually purchased one as a curiosity.

    It is completely functional with no issues that I have discovered.

  1. dimmer

    Joined: Dec 1969



    So you don't use the wired ethernet card then Karango? And are happy to disobey laws which might, in turn, cause the end of OS X and Apple?

  1. EternalGuest

    Joined: Dec 1969


    re: re: pity the fools

    i think he's also talking about the fact that psystar won't be around to support these machines once apple conclude this suit. the software is hacked to work and needs updates every time apple disables the previous crack. in theory, to continue to use your machine in a post-psystar world, you would have to forgo any updates apple provides in the future.

  1. martyrart

    Joined: Dec 1969


    MS in the year 2010

    Lol, man... This Rudy guy is a straight shooter with MS upper management written all over him. Microsoft hire this guy to replace Balmer now. My God I didn't think I'd find anybody with bigger brass cojones than Balmer!

  1. ibugv4

    Joined: Dec 1969


    to dimmer

    Most folks aren't using ethernet anymore, and even if they are, the PyStar's claim support (and I know ethernet worked out of the box on a variety of non-Apple systems I've made this work with). If this is the "end" of Apple, they deserved to fail. If anything they should license and welcome this.

  1. iREZ

    Joined: Dec 1969


    agree with ibugv4

    Apple's been killing consumers with their hardware prices for sometime. I have no problems using Mac OS X on my dell mini 9 and don't expect any support or help from Apple but this FUD of having to install patches and the like on Hackintosh's is ludicrous. I've been able to handle every update Apple's thrown out without a hitch. Go ahead and pay your $1500 for your Macbook Air, after all it's still only paper thin, but I'll gladly keep my 1.5" thick

  1. iREZ

    Joined: Dec 1969


    agree with ibugv4

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