The Mac cloner’s ability to pay up is at question

Dec 2, 2009 09:01 GMT  ·  By

Florida-based Mac clone maker Psystar has reportedly agreed to pay Apple $2.7 million in damages after a San Francisco court finally ruled in favor of Apple, which, in early 2008, argued that its end user license only let people install its operating system on Apple-branded computers.

In what seems like a deal that will bring Psystar’s sale of unauthorized computers to an end, the company pre-installing generic PCs with Mac OS X claimed in a motion filed on Monday that a partial settlement had been reached. An excerpt from Psystar's motion filed in the federal court of San Francisco can be seen below, courtesy of CNet News.

"Psystar has agreed on certain amounts to be awarded as statutory damages on Apple's copyright claims in exchange for Apple's agreement not to execute on these awards until all appeals in this matter have been concluded. Moreover, Apple has agreed to voluntarily dismiss all its trademark, trade-dress, and state-law claims. This partial settlement eliminates the need for a trial and reduces the issues before this Court to the scope of any permanent injunction on Apple's copyright claims."

Although it appears Psystar will be unable to sell Mac clones anymore – the company’s entire line of computers is listed as "out of stock" on the Psystar website –, Psystar seeks to continue selling the Rebel EFI utility, which allows for the easy installation of multiple operating systems on a single system. The "authenticated," paid version ($50) allows for the permanent installation of said operating systems on a generic PC, while providing the DUBL, supported hardware profile features and related drivers, as well as the company’s support for the application.

It is unknown exactly how much support Psystar will be able to offer, given the current circumstances, or whether it will be able to offer anything at all to those interested in its products.

As noted by AppleInsider, Psystar’s ability to pay the $2.7 million in damages is questionable. Softpedia itself reported earlier this year that the cloner had filed for bankruptcy to emerge from Chapter 11, while Psystar's total assets, according to court filings, are now believed to amount to less than $50,000, according to the AppleInsider report. Apple addressed the court saying it believed Psystar would be unable to pay any damages, adding that, "Even if Psystar could pay damages, the harm to Apple's brand, reputation and goodwill is unquantifiable."