 Apple is looking to use Psystar, makers of $399 Mac clones, as an example to other would-be clone-makers, as it looks to crush the company in court. Psystar's antitrust suit against Apple, which some critics say was its best chance of survive was just rejected. (Source: Psystar)
Legal analysts say Apple has killed Psystar's best hope of staying in business
Apple has always kept tight reins on its products, developing most of its software and only licensing select hardware and third-party software. While there are some benefits to this, Apple has frequently exercised its dark side as well, from killing iPhone apps which might compete with its own offerings to crushing Mac clone makers.
When it comes to personal computers, Apple has long exercised a complete dictatorship over its kingdom, refusing to allow any clones to be produced once Steve Jobs regained the helm. Jobs and other Apple executives perceive clone makers as a threat to Apple's business. For this reason to date it retains only a small market share, despite strong sales.
Clone maker Psystar launched with the intention of making OS X computers for several hundred dollars cheaper than Apple's own offerings. It seemed a win-win for both companies -- Psystar would be selling machines, and Apple would see increased software sales. Furthermore, Psystar's $399 machines targeted different market sectors than Apple's as they were aimed at the bargain market, while Apple's Mini line of desktops were aimed at those seeking a small form factor.
However, Apple quickly showed that just because it's a new century doesn't mean it's turned over a new leaf when it comes to clones. Apple filed suit against Psystar over a host of supposed minor violations of the OS X license, making one thing clear -- it intended to put the company out of business.
Just as Psystar began to ship units in April, the legal battle began. After Apple filed suit against it, a desperate Psystar filed an antitrust countersuit against Apple. Psystar alleged that Apple engaged in anticompetitive processes to prevent other companies from selling computers that ran OS X. Legal analysts said the suit was likely Psystar's last hope of staying in business.
Now, in new documents it has been revealed that Judge William Alsup of the U.S. Federal Court for the Northern District of California has rejected Psystar's argument. Psystar can try to amend its argument to convince the Judge that it has come to a valid argument, but it only has 20 days left before the case is dismissed.
Judge Alsup ruled that the antitrust argument was invalid because OS X had competitors on the market. He states, "The pleadings...fail to allege facts plausibly supporting the counterintuitive claim that Apple's operating system is so unique that it suffers no actual or potential competitors."
If the suit is dismissed, as now seems likely, Psystar will be headed to court with Apple. Legal analysts say that against the power of Apple, Psystar will likely be put out of business -- permanently -- like many clone makers before it.
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