Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Again you commit the common lay error of overextension. The operative language in the decision is "not merely a license" (emphasis added).

In fact, the judge says so expressly: "That issue is not to be conflated, however, with whether Mr. Vernor or his customers are bound by the License." (Order, p. 19, ll. 25-6). The court made no determination about the EULA, because it was not necessary to reach a decision on the complaint.

I see the difference there, thanks for the clarification.

I am still confused, though, how the package sold to me is both merchandise and license. I didn't sign anything when I bought it, and if I had a year and the appropriate unix command skills, I could feasibly install it on my Hard Drive without even seeing the EULA... For all I know, I bought a box containing a little booklet (install guide), a DVD with some code on it and a pair of Apple Logo stickers, no contract included. It's akin to buying a book with a license agreement on printed on page 1. It's basically meaningless when a user can just start reading on page 2.

Can you explain how a company can impose/enforce an end-user agreement when there is no discrete contract, and - more importantly - nothing in the box but a disk with code.

A valid feeling, but one not borne out by law.

Which is why we'll have to wait for this court case. Hopefully PsyStar will bring it up.

-Clive
 
This is where we're at. Some (myself included) feel the EULA is anti-competitive and therefore challenges the legality of the agreement, subsequently threatening the validity of it. You and others disagree. We can throw court cases and legal definitions back and forth at each other day and night but none of it makes a difference since we aren't judge or jury. Such a matter won't be resolved until there's a court ruling.

Until then, it just doesn't make sense to argue over it.

For my own part I find this and a few other threads on the subject helpful in expanding my own knowledge of the inner workings of copyright law and having a better understanding of the case when it finally gets going.

Personally I think Psystars main defense will be based on section 117 of the copyright code. 117 is an amendment of the copyright law added in 1980 which contains the 'adaptation' clause :
(a) Making of Additional Copy or Adaptation by Owner of Copy. — Notwithstanding the provisions of section 106, it is not an infringement for the owner of a copy of a computer program to make or authorize the making of another copy or adaptation of that computer program provided:

(1) that such a new copy or adaptation is created as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other manner, or

(2) that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that continued possession of the computer program should cease to be rightful.​
117 is pretty terse though and they give no definition for 'adaptation' or 'essential' and they don't explain what is meant by 'in conjunction with a machine and that it is used in no other manner', so courts have interpreted the section very narrowly and the intent and effects of the use of the copyrighted material usually influences the ruling pretty heavily, that's one of the reasons I've been talking about intent so much.

section (b) prohibits the transfer of adapted code without the copyright holders permission :
(b) Lease, Sale, or Other Transfer of Additional Copy or Adaptation. — Any exact copies prepared in accordance with the provisions of this section may be leased, sold, or otherwise transferred, along with the copy from which such copies were prepared, only as part of the lease, sale, or other transfer of all rights in the program. Adaptations so prepared may be transferred only with the authorization of the copyright owner.

So psystar will probably have to claim that they were acting as a contractor installing software that the customer already owned on a computer that they also owned. That will be an interesting argument, Psystars website currently says,
Does the basic configuration include Leopard?
No. Leopard is an option that must be purchased. If Leopard is purchased then it will be installed on the Open/OpenPro for free. By default our computers come with Ubuntu Linux and all "flavors" that we offer are included and preinstalled at no extra cost.
That seems pretty key to me, but as I said, intent and effect weigh heavily in the 117 defense, it was enacted to allow users to continue using software they'd purchased, by allowing backup copies and allowing the adaptation to new systems in a time when source distribution was still common (1980). It will hinge on the court deciding What Apples intent in making OSX was, what Psystars intent in using OSX was and how that the use affects Apples intellectual property.
 
I see the difference there, thanks for the clarification.
No problem!
I am still confused, though, how the package sold to me is both merchandise and license.
It's a simple combination of constituent parts (that's often not so simple in practice). A license is an entity to be manipulated, and a contract is in many ways a commodity. When you buy an orange, it's relatively simple--you get the orange. When you buy a toaster, you get a box, some warranty terms, and the toaster. You don't get the right to reproduce the toaster or the right to use their IP to sell or otherwise distribute your own products. You can certainly build a toaster based on what you learn from that toaster, but you can't replicate that toaster model.

You can buy a contract, too. You can even buy the option to enter into a contract (called, sensibly enough, an option contract). As a seller, you can put together any combination of items as a single product, so long as they're yours to sell.
I didn't sign anything when I bought it
You don't need to.
if I had a year and the appropriate unix command skills, I could feasibly install it on my Hard Drive without even seeing the EULA
Willful ignorance is not an excuse, particularly where you have to have observed it in order to "ignore" it. You can't cut it out without seeing that it's there.
It's akin to buying a book with a license agreement on printed on page 1.
That depends on what the license agreement is and what is acceptable as a manner of assent. An interactive mechanism (Click "I agree") is uncontroversially manifest assent.
Can you explain how a company can impose/enforce an end-user agreement when there is no discrete contract
It's a condition of use and longstanding trade usage. Unless you had never encountered software before, you cannot claim surprise. Even if you had never encountered a computer or software before, the presentation of terms clearly give you the right to decline without penalty. Having to drive back to the store or pay return shipping is incidental.

There's no other practical way for mass transactions to be performed. Standard form contracts are just the way it is. Individually negotiating and signing just isn't feasible for these kinds of low-value transactions.
Which is why we'll have to wait for this court case. Hopefully PsyStar will bring it up.
How will they bring it up with no favorable authority? It's not a case of first impression; it's a case with prior treatment that has gone the other way. This case will probably never even get to trial. Setting aside the issues of antitrust and EULAs, Psystar will have to demonstrate that the product is sold as an independent whole, and not offered at an artificial discount to select customers. Even if they clear the unlikely first hurdle that it constitutes anticompetitive tying, Apple still has a "promotional tying" defense recognized by the courts.

To put it simply, they must prove that OS X is offered at market value for a proprietary, blank-slate machine and that it is not simply offered as an upgrade for existing customers. They must also prove that the product is independently viable (it's not, since the sale of Macs is what funds OS X development, not the sale of copies, which doesn't even appear to account for 1% of Apple's revenues).

Because every Macintosh comes with a full-version that is not transferable except with the computer, as long as the system requirements specify a Macintosh, the retail packaged Leopard is nothing more than an upgrade for existing customers. Even outside the mechanics of the situation, which are sufficient for such a finding, comparison to other sources shows pricing in line with proprietary OS upgrades, not full versions.
 
Axiotron Vs. Psystar?

What's the difference between the two's business strategies? How is one legal and able to sell their product while the other is being sued by Apple? From what I see they are both putting together their own hardware and running Apple software. The only difference that I can see is one being a different product than what's sold by Apple now. Would the release of an Apple-made Mac tablet lead to them also suing Axiotron in order to stop direct competition?
 
What's the difference between the two's business strategies? How is one legal and able to sell their product while the other is being sued by Apple? From what I see they are both putting together their own hardware and running Apple software. The only difference that I can see is one being a different product than what's sold by Apple now. Would the release of an Apple-made Mac tablet lead to them also suing Axiotron in order to stop direct competition?

I've moved your question to a more appropriate forum.
 
What's the difference between the two's business strategies? How is one legal and able to sell their product while the other is being sued by Apple? From what I see they are both putting together their own hardware and running Apple software. The only difference that I can see is one being a different product than what's sold by Apple now. Would the release of an Apple-made Mac tablet lead to them also suing Axiotron in order to stop direct competition?

I'm guessing it's that they act more as a peripheral manufacturer, adding the touch screen and gps to macbooks they purchase and the software sits on top of the OS without modifying it.

There's also this bit from their website :
Axiotron has previously participated at the invitation of Apple Inc. in its Proprietary Solution Provider program, a supply contract arrangement. Subsequently, Apple migrated Axiotron to its current enrollment in the Apple Premier Developer program, which offers better direct engineering and development assistance, early access to upcoming technologies, and worldwide channel sales and marketing support.
So it sounds like there is at least some approval by Apple.
It's a pretty dicey business plan, they buy whole Macbooks and mod them for resale, if Apple ever makes a tablet they could do it much cheaper or at least with less overhead, even if they don't, slight changes to the macbook require axiotron to redesign their HW to fit.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.