Psystar Agrees to Pay Nearly $2.7 Million in Settlement With Apple

[MacRumors]

Earlier today, we reported on a preliminary settlement between Apple and Psystar regarding the former's lawsuit over copyright infringement by Psystar in selling PC hardware preinstalled with Mac OS X Leopard. Engadget now reports on a new court filing outlining the settlement agreement that sees Psystar scheduled to pay approximately $1.34 million to Apple and a like amount in attorneys' fees.

The agreement covers payments related to five claims made by Apple for which the court ruled in its favor earlier this month. In return, Apple has agreed to drop an additional half-dozen claims primarily related to trademark infringement and not addressed in the earlier judgment. Financial payments are also not required to be made by Psystar until all legal appeals have been processed.

Now, considering Apple and Psystar are currently engaged in pretty much the exact same case in Florida over Snow Leopard, we'd say that this agreement isn't much more than a way for both sides to save money and move on to that fight: Apple's already won the bulk of its case against Psystar in California, and spending money to litigate trademark claims we thought were weak when we first read them doesn't really buy Steve any leverage he doesn't already have, while Psystar probably needs to scrimp all the coin it can right now.

Still at issue is the permanent injunction requested by Apple that would explicitly prohibit Psystar from selling computer hardware with Mac OS X preinstalled. Psystar's court filings indicate that it is prepared to shift the burden of Mac OS X installation to the consumer and instead refocus its business on selling hardware and software to enable that process. Whether such an arrangement will be considered permissible is in significant doubt and will certainly be addressed in future proceedings.

Article Link: Psystar Agrees to Pay Nearly $2.7 Million in Settlement With Apple

 

[thegoldenmackid]

I'm really shocked that Apple would agree to this. It would seem like ensuring that Psytar seizes to exist would be a good thing for Cupertino.

 

[macshill]

...And offer Hackintosh-ready computers instead. lol

 

[pdpardue]

...And offer Hackintosh-ready computers. lol

it's like the 'cable ready' tv's from a million years ago... ha ha

 

[StuBeck]

If they've sold less than 1k machines like is claimed, how are they ever going to pay anything close to this?

 

[xsecretfiles]

I personally don't know anybody who has bought a Psystar machine...or know who Psystar is....

I sure hope they made enough money while it lasted to pay this off...

 

[RyanR.]

Hope it was worth it!

Although every good company has been through something that cost them money even . Although this shows you why you should read all the tiny print when installing something and why you shouldn't steal....

 

[Macky-Mac]

the terms of the financial settlement mean little since Psystar is unlikely to be able to pay up....this now about the permanent injuction that Apple is asking the court to issue.....and that isn't covered in the settlement

Still at issue is the permanent injunction requested by Apple that would explicitly prohibit Psystar from selling computer hardware with Mac OS X preinstalled.

 

[Xavier]

And boom goes the dynamite.

Not a very big boom though. Surprising.

 

[noodle654]

Pystar is definitely shutting down now.

 

[cmaier]

it's about time.

 

[ShiftyPig]

Blood from a turnip tbh.

Apple just wants to kill Psystar; the money doesn't matter. I'd be shocked if they ever get a cent.

 

[MattBaker]

It's 2K per machine sold

If Psystar sold 700-odd computers, then this is $2K/machine. Double that if you count the attorney fees.

 

[LagunaSol]

Still the question remains: who was the rumored mystery source of funding for Psystar's legal challenges (if there was a mystery source of funding at all)?

 

[50548]

If they've sold less than 1k machines like is claimed, how are they ever going to pay anything close to this?

Just bury those pirates to the ground, Apple...enough is enough.

 

[Cinematographer]

What about the rumours that there is some kind of puppetmaster behind Psystar? Any information about the ones secretly assisting the Frankenmac makers?

 

[HBOC]

Still the question remains: who was the rumored mystery source of funding for Psystar's legal challenges (if there was a mystery source of funding at all)?

Exactly! I want (as everyone does) to know WHO is financially backing this company, and who is involved. I guess we will find out in early January?

 

[nagromme]

If they've sold less than 1k machines like is claimed, how are they ever going to pay anything close to this?

If they sold 768 machines, at 33% margin, then they should be OK, as long as each machine sold for around $10,500.

 

[theheadguy]

All a bit underwhelming...

 

[ouimetnick]

Ouch. I hope they stop doing this. But Apple, really lower your prices. I can pick up a dell Latitude for $704 that has higher specs than your $1499 MBP.

 

[cmaier]

Ouch. I hope they stop doing this. But Apple, really lower your prices. I can pick up a dell Latitude for $704 that has higher specs than your $1499 MBP.

And half the lifespan and a quarter of the resale value, if it's anything like any other Dell I've ever seen.

 

[xlii]

To a business... that's chickenfeed... this isn't over by a long shot especially if paystar is being bankrolled by another company.

 

[BLOWJOBSCEO]

Why Does this news matter??

If anyone can tell me why Apple stock sold off at the last hour of trading today I would really appreciate it. Obviously it was not because of this non news.....

 

[macshill]

Ouch. I hope they stop doing this. But Apple, really lower your prices. I can pick up a dell Latitude for $704 that has higher specs than your $1499 MBP.

lol That's blasphemy saying in here you expect Apple to offer comparable specs computers at about the same price as its Windows competitors, save maybe +20-30% for the Rolls Royce hood ornament (the backlit Apple logo on the backside top).

 

[*LTD*]

768 units sold.

$2.7 million in damages.

Priceless.