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Bankruptcy court blocks Psystar from delaying lawsuit

updated 05:35 pm EDT, Tue August 11, 2009

Psystar bankruptcy dismiss

United States Bankruptcy Court Judge Robert Mark has granted Psystar's request for voluntary dismissal of its Chapter 11 proceedings, although the clone maker is restricted from submitting a similar filing for the next year. The judge also explicitly blocked the company from receiving an automatic stay if it chooses to pursue a Chapter 7 filing.

The additional terms of Mark's ruling effectively prevent Psystar from attempting to delay the case through additional bankruptcy filings. Following the initial Chapter 11 filing, involving business reorganization, the company worked to establish a stay against Apple. The court, however, ruled in Apple's favor and allowed the lawsuit to proceed. Even if Psystar chooses to liquidate its assets and work through a Chapter 7 proceeding, the Apple suit will continue.

Along with the restrictions placed on the clone maker, the judge also ordered that the Southern District of Florida shall retain jurisdiction of the company's bankruptcy case. If Psystar was permitted to switch to another jurisdiction, the lawyers would have a chance to have the case reviewed by another court.

Debt disclosures indicated Psystar may had difficulties paying its legal defense, as the bill owed to Carr & Farrell surpassed $80,000. Apple accused the clone maker of withholding documents relating to sales and other financial information, although Psystar argued that it simply did not keep extensive records.

Psystar recently transitioned to a new defense team, Camara & Sibley LLP. The law firm is also currently involved with other high-profile cases such as the RIAA copyright infringement suit against Jammie Thomas-Russet. Camara & Sibley attorneys are currently defending Thomas against a $2 million ruling.

Following the acquisition of a new legal team, the company has also begun to post regular updates on its community page. "Apple's copyright on OS X doesn't give Apple the right to tell people what they can do with it after they buy a copy," the company said on its blog. "Apple can't tell an applications developer that it can't make a piece of Mac-compatible software. They can't forbid Mac users from writing blogs critical of Apple. And they can't tell us not to write kernel extensions that turn the computers we buy into Mac-compatible hardware."

As part of the discovery phase of the case, Apple will allegedly be allowed to enter the Psystar facilities on Sunday to observe the creation of Mac clones. The Florida-based company is also working on a new section of its community page to highlight developments in the case. The two companies are tentatively scheduled to begin trial on January 11th.

by MacNN Staff




  1. chas_m



    It is pretty obvious now

    that the Chap 11 filing was a last-ditch effort to delay Apple inevitable win. Now that they've been blocked from similar shenanigans, they'll either have to face up to the fact that they're a scam and close up shop, or consult a SCO attorney for tips on how to drag this thing out further to the detriment of all.

    Until I watched some "Town Hall" birther footage recently, I could not imagine anyone dumb enough to be a Psystar customer. Now I can see their intended demographic.

  1. hayesk

    Joined: Dec 1969


    Buy a copy?

    "Apple’s copyright on OS X doesn’t give Apple the right to tell people what they can do with it after they buy a copy,"

    Except people aren't buying copies. They're buying a license to use the software on Apple hardware.

  1. testudo

    Joined: Dec 1969


    Re: Buy a copy

    Except people aren't buying copies. They're buying a license to use the software on Apple hardware.

    And yet, when you buy a CD or DVD that is a license to watch that movie or listen to music, you feel you have the right to do with that product how you see fit, like rip that movie to play on an 'unsupported' platform like an iPod.

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