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May 20, 2009 4:28 PM PDT

Russian clone maker the latest to take on Apple

by Jim Dalrymple
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RussianMac is the latest company to release a Mac clone and test Apple's resolve to stop companies from selling its operating system.

On its Web site, RussianMac says that a full version of Mac OS X Leopard comes pre-installed on its computers. The company also confirms that the operating system is able to receive automatic system updates from Apple once installed.

This is where Apple seems to have the clone makers over a barrel. Apple's Mac OS X End User License Agreement (EULA) clearly forbids anyone from installing the software on hardware not sold by Apple. This effectively closes the door on companies determined to make a Mac clone.

However, RussianMac maintains that it does not violate the terms of the EULA agreement because the operating system was purchased directly from Apple. That still doesn't get around the condition of installing it on an Apple-branded machine.

Legit or not, it is a popular argument. Germany-based PearC is using that defense to sell Mac clone computers in that country.

Of course, in the U.S., Psystar is the case everyone has heard about. The company first made headlines in April 2008 when it released its first Mac clone with Mac OS X pre-installed.

Apple filed a lawsuit against Psystar in July 2008, claiming the company was violating copyright and software licensing agreements.

The legal battle is ongoing between Psystar and Apple. The two are set to meet in court on November 9. Most legal experts expect Apple to ultimately prevail in the case.

Because the laws in each country are different, it's unclear whether Apple could be successful in Russia or Germany.

Jim Dalrymple has followed Apple and the Mac industry for the last 15 years, first as part of MacCentral and then in various positions at Macworld. A guitar player for 20 years, Jim also writes about the professional audio market, examining the best ways to write and record songs on a Macintosh with Logic Pro and Pro Tools. Jim is a member of the CNET Blog Network and is not an employee of CNET.
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by kcotham May 20, 2009 5:35 PM PDT
Everyone seems to be trying to make a quick buck off of someone else's hard work. Instead of cheating and stealing and violating contracts, why don't they put their energies towards something more productive? I sincerely hope Apple wins all these cases, and I'm sure they will. The law is quite clear on this matter, at least in the United States it is.
Reply to this comment
by monkeyfun14 May 20, 2009 5:57 PM PDT
Oh cry me a river..

How does this even effect the end user? If Apple is really better then Microsoft they can handle larger amount of system configurations.

If anything this benefits users with more affordable prices I find it absolutely amazing that Apple users are more about worried about making sure Apple makes most money possible rather then having competition and a fair price.

"Everyone seems to be trying to make a quick buck off of someone else's hard work."
Apple got paid for their hardwork these are legit paid for licenses. So your point is immediately invalidated.
by tech_crazy May 20, 2009 6:03 PM PDT
Applies equally to Apple. Stop charging outrageous premiums on the machines when they use stock components similar to PCs. If it was unique hardware (which to some extent was the case before the switch to Intel chips), it would have been somewhat passable, but now, heck no! And also, don't forget that OSX is based on Linux, not written from scratch. The EULA in the license is overarching and I certainly hope the courts quash it.
by monkeyfun14 May 20, 2009 6:03 PM PDT
Oh cry me a river..

Apple users are the only people I know who are more concerned about Apple making as much money possible then having competition and a more reasonable price.

"Everyone seems to be trying to make a quick buck off of someone else's hard work. Instead of cheating and stealing and violating contracts, why don't they put their energies towards something more productive?"

Apple gets paid the $129 for the OSX licenses so really they are being compensated. It isn't like the company is stealing Apple's cases they pay for the hardware that go in the machines in well. As far as I see this is all perfectly normal for healthy competition.

But no we will continue to attack Microsoft for requesting users to follow legit licensing agreements or input a serial once.


[CNET editors' note: Prohibited content deleted.]
by Perry_Clease May 20, 2009 6:18 PM PDT
monkeyfun14 did you check out those four Apple Stores in the Detroit Area?
by monkeyfun14 May 20, 2009 6:29 PM PDT
@Perry

I'll acknowledge they are their I haven't had the time to check them out yet.
by Perry_Clease May 20, 2009 6:49 PM PDT
"by monkeyfun14 May 20, 2009 6:29 PM PDT
@Perry

I'll acknowledge they are their I haven't had the time to check them out yet."

No problems friend. Have a great evening.
by kcotham May 20, 2009 9:12 PM PDT
@tech_crazy
Mac OS X is based on NeXTSTEP and FreeBSD, not LInux.

@monkeyfun14
Violating the EULA is violating the EULA is violating the EULA. That's the facts. The end user agrees to that license the moment they pay for the software. That is the fact. If you do not see this, then you are more dense than I imagined and you are an unethical person by nature.
by Mmmhmm May 20, 2009 9:16 PM PDT
I sincerely hope the EU drums up a monopoly legislation somewhere to sue the pants off of Apple. It seems quite the double standard that Microsoft will get dinged for providing software capability built into their OS, while Apple can dictate what hardware people use their software on and not be called to task for it. If Apple wanted to scream 'We don't support this!' that's one thing. Making it illegal and trying to shut down businesses for giving people the option of using legally purchased software on separately and legally purchased hardware that's another.
by mbenedict May 20, 2009 9:18 PM PDT
@kcotham:

Not unless the EULA violates the law, which is what Psystar and PearC are alleging. EULAs cannot put undue restrictions on trade, for example.

Psystar argues that restrictive portions of Apple's EULA should be declared void by the courts.
by tm_anon May 21, 2009 4:46 PM PDT
@mbenedict

It would help legitimacy if PearC and Psystar had made that claim before attempting to sell machines with OSX preinstalled and only making a claim after being taken to court. Apple put into the EULA these restrictions in a very clear manner. It's not something that would ever come as a surprise.

The lawsuits aren't about legality in this case, they're just a last ditch effort to make a buck.
by pithenumber May 20, 2009 6:00 PM PDT
Go RussianMac and PearC
Reply to this comment
by Perry_Clease May 20, 2009 6:19 PM PDT
I agree, we all hope that they will go away.
by kcotham May 21, 2009 4:41 AM PDT
All the way to the poor house.
by Seaspray0 May 21, 2009 7:30 AM PDT
@perry and kcoham. So, are you two employeed by apple or are you the president and vice president of the apple fanclub?
by shycelticwitch May 21, 2009 7:37 AM PDT
@ Seaspray

Are you just angry because you weren't smart enough to buy a Mac?

@ the rest of you Apple hating gamers with no life other than the one you spend on your mom's smelly sofa in the basement: (from "Armageddon") "Russian spaceship, American spaceship, ALL PARTS are made in TAIWAN!" It's not the parts, its the quality and care that goes into putting them together. Apple simply wants to make sure that the operating system doesn't get blamed for problems that are caused by inferior craftsmanship (mass production). Not unreasonable by any stretch of the imagination.
by Perry_Clease May 21, 2009 8:08 AM PDT
"by Seaspray0 May 21, 2009 7:30 AM PDT
@perry and kcoham. So, are you two employeed by apple or are you the president and vice president of the apple fanclub?"

I am an Apple stockholder and the primary reason I get an account to post on CNET was to counter the calumny posted here by trolls.
by kcotham May 21, 2009 4:07 PM PDT
@Seaspray0

Neither. I'm a thinking person that doesn't like to see anyone's intellectual property leveraged for someone else's personal gain, especially when they have agreed not to that very thing.

I post on here for the same reason as Perry does, and have said so numerous times. The only difference is that I'm not a share holder of any company.
by bimmin May 20, 2009 6:10 PM PDT
tech_crazy - OSX is not based on Linux.
Reply to this comment
by May 20, 2009 6:21 PM PDT
BSD, whatever, it's all the same to the non-believers. :)

Personally I think it is a shame Apple is allowed to put such restrictions on its software. It is a separately sold product, if I'm paying for it I'll use it as I please.
by tehrani625 May 20, 2009 6:36 PM PDT
Fine its based on Unix, which also underpins almost everything other then all versions of Windows... Oh and I won't be buying a Russian Hackentosh but I will add a second HD to my gateway laptop so that I can install OSX and play with garage band (cuz that's all OSX is good for, and I don't want to take the time to learn fruity loops)
by kcotham May 20, 2009 9:13 PM PDT
Just ignore tehrani625, it's obviously a troll.
by Angmarr May 20, 2009 6:31 PM PDT
I with the side that cares about consumer pricing on this!
Reply to this comment
by kcotham May 20, 2009 9:15 PM PDT
In a free market system, when people will not pay the price, then it is lowered. Apple will continue charging what they do for their products because people are willing to pay the price. When you fault Apple for charging a "premium", you are faulting the entire system.

Violating the EULA is just another way of stealing. It's that simple.
by Angmarr May 20, 2009 9:56 PM PDT
answer me a simple question?

why doesn't apple make a less powered Mac ... less than 2Ghz processor with a mainstream graphics card ... common sense says they will make a huge profit in the long run!
Is it because Apple must keep its image as "We only make Higher end computers for the wealthy, we are too good to make anything less"
by baconstang May 20, 2009 11:47 PM PDT
Rhetorical questions are the easiest to answer. Eh?

You think it would be a smart business move to compete with scores of cheap PC manufacturers for very marginal profits? It makes as much sense as BMW trying to compete with KIA in $10-12K range.
by Angmarr May 21, 2009 12:23 AM PDT
but the difference is that in the computer market there are only 2 options (ok plus Linux), so ya it would make sense to make a Slightly lower performance computer ... And It doesnt have to be cheap as PCs, just cheaper than a macbook ...
by kcotham May 21, 2009 1:11 AM PDT
@Angmarr

This tired old argument that Apple computers are only for the wealthy is simply not true. I know lots of people that are not, by any definition wealthy that chose Macintoshes. I, for one, have never been wealthy, ever, and I've owned Macintoshes since 1998.

They do use a mainstream graphics card as well. They've used ATI and NVIDIA cards for many years.

I'm sure the CFO of Apple has made a study of making a computer like you describe and found it not viable. Put aside your personal vendetta, jealousy, or whatever it is and think logically for a second. Besides, they may actually have something like that in the pipe. I sincerely doubt they will, the segment is too tight.
by Angmarr May 21, 2009 12:30 PM PDT
I don't hate apple - not liking it is a different thing

Considering how many people want to buy a mac (ya ya blah blah there is a lot = P ) why not make a SLIGHTLY cheaper than Macbook laptop, with SLIGHTLY weaker stats??

"" Intel Core 2 Duo 1.8GHz, Integrated Graphics card, Skip the Aluminum ..... for $799 ...... and call it .... here's the best part...... MACBOOK-JOE """

what!? no taker!? whatever = P
by kcotham May 21, 2009 4:08 PM PDT
The polycarbonate MacBook was retained for that purpose.

[CNET editors' note: Personal attack deleted.]
by sharmajunior June 3, 2009 8:55 AM PDT
@ baconstang

A KIA can out work a BMW in some of the harshest environments in the world. So i think it is relevant that BMW should compete with all not just the elite car manufacturers.
by eddielung May 20, 2009 6:32 PM PDT
If Apple opened its configuration to clone way back in the 80s, Microsoft wouldn't go too far from being a small startup in Seattle.

Well, it doesn't matter now.
Reply to this comment
by myles taylor May 20, 2009 6:44 PM PDT
The the Mac OS would be in just as bad a shape as Windows is.
by mbenedict May 20, 2009 9:15 PM PDT
Not really.

Bill Gates himself suggested that Apple should license Mac OS and its ROM when the Mac was introduced in 1984. He knew Mac OS was not going to be a threat to Microsoft back then.

Apple finally allowed clones in 1995 (with Radius, Umax, Motorola, etc., all making legal Mac clones). To bad for them, Microsoft introduced Windows 95 later in the year which absolutely demolished the Macs.

Facing strong competition from Windows 95, Mac sales dropped by 50% by 1997. When System 8 came out in the summer of 1997, clone licensing effectively died with it.
by kcotham May 20, 2009 9:17 PM PDT
Apple never closed off the Mac OS from third party manufacturers. The greed of those third party manufacturers caused that. Apple wanted a fair price paid for licensing the Mac OS and UMAX, Motorola, etc. refused to pay the price. Steve Jobs said that they told him to "go pound sand". Apple was more then willing to renew the licenses. So, if you want to blame anyone, blame the clone makers, not Apple.
by mbenedict May 20, 2009 9:21 PM PDT
Umm, no!!

When you price a product so that exactly ZERO of the world's manufacturers would license your product, that's BY DEFINITION is *not* "fair price".
by kcotham May 21, 2009 1:17 AM PDT
@mbenedict

You don't know what you are talking about. I was referring to a historical situation in which Apple was already licensing it's Mac OS to other companies that were making Macintosh clones. When the time came for the license to be renewed, the clone makers refused to pay a fair price for the license. Those very clone makers had damaged Apple's hardware business so much that they had caused a severe dip in the market. The clone makers were trying to get something for nothing (or next to nothing). Steve Jobs actually called the many times to see if they would reconsider, they refused ever time. Now, in 2009, you have manufacturers standing in line wanting to license Mac OS X. With what happened in the 1990s, it is no wonder that Apple (which has historically been a hardware company first) would be cautious about the prospect.

Windows 95 was a complete joke. It was a rip off of the Mac OS look and feel and was also a technological disaster. As an example, do you remember "plug and pray"? That was Windows 95.
by sharmajunior June 3, 2009 9:05 AM PDT
@ kcotham

Then why did Apple reject HP's and Dell's request to license OSX? It did not even consider licensing it.
by myles taylor May 20, 2009 6:44 PM PDT
You know, Apple bundles the cost of the OS in with it's computers, which is why it's able to offer them so cheap and part of the reason they charge more for their computers. Purchasing the OS does not make it legal. I know a lot of people don't agree with me on this, but part of why Mac OS is awesome is because it's made to work with the hardware. I wouldn't want to have Microsoft's job of trying to get it to work with everyone and their uncle's hardware. If Apple opened up the licensing, then they would run into the same problems. Vertical integration is what makes Apple able to include printer drivers and the like in their machines. I wish Microsoft had more say in the hardware design, which would give them more power over their OS. Of course, with Open source, it takes this argument away, but that's a fairly new thing.
Reply to this comment
by tm_anon May 21, 2009 7:00 PM PDT
Linux includes printer drivers and the like into the OS with very few exceptions (those being due to proprietary software demands). It's smaller, runs older hardware much better, has full 64 bit support, better security and better file management. All of this as well as having less system maintenance required by the user in order to keep the machine up and running.

Linux can run more hardware with no extra drivers needed than Windows can. That means it can handle more platforms than Windows before worrying about looking for and installing extra drivers. Now, use a distro like Ubuntu which will search for and install proprietary drivers as well and that's close to 100% of all hardware configurations without the need to search for and install a driver.

The problem has never been that Windows is trying to fit every hardware configuration out there, it's that Windows isn't trying to fit everyone, everyone's trying to fit Windows.
by emcourtney May 20, 2009 7:03 PM PDT
Apple's position is ridiculous, it always has been, and it's likely unenforceable. The OS X EULA is weak because of some unique circumstances: Apple is the sole supplier of the product, Apple sells OS X unbundled from their computers to the general public, no other hardware vendor imposes a similar restriction AND sells their software as Apple does, lastly, the EULA is a contract of adhesion. Taken together you can strongly argue that the hardware restriction term is unconscionable.

As for me, I'll run my copy of OS X in my toaster if I please, Cupertino be dammed.
Reply to this comment
by Perry_Clease May 20, 2009 7:06 PM PDT
Don't worry, you and your OSX toaster are safe, as long as you don't take a bath together. As to the EULA being weak, we will find out soon enough when Psystar is back on the witness stand.
by W7ILL May 20, 2009 7:38 PM PDT
Apple should not be able to claim sole right to the OS. It is a seperate producst and should be allowed to be sold by other people. Besides if there buying the OS from apple then there shouldn't be a problem because apple is still making money off of it. Also you should realize that part of the reason there are companies out there doing this is because they are taking advantage of the fact that apple is so expensive and they can sell it cheaper and make money off of it.
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by kcotham May 20, 2009 9:19 PM PDT
Why the hell not? It's their intellectual property. They created it. You don't see IBM just giving away AIX do you?
by colesw May 21, 2009 6:36 PM PDT
You don't see IBM giving away AIX, but I can buy it, install it on whatever I please and then re-sell that to someone else.
by seven7dust May 21, 2009 2:47 AM PDT
just because Microsoft does it Apple doesn't have/want to license it's O.S
Microsoft's model is to be a monopoly in computer operating system
Apple's is not !
Reply to this comment
by kelmon May 21, 2009 5:06 AM PDT
Despite all the fuss over the likes of Psystar and the like, this really is a non-story for the simple reason that these tiny companies are never going to make a dent in Apple's business. What will make a dent is if/when 'real' manufacturers start to release Macintosh compatible systems with the Mac OS installed on them, by which I mean the likes of Dell, Lenovo, HP, etc. The only important story is the court case between Psystar and Apple, the conclusion of which will be the moment that Psystar themselves disappear from the map regardless of the decision. As far as I am concerned this Russian outfit can do whatever it likes because it's simply not important enough.
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by pithenumber May 21, 2009 4:21 PM PDT
if Psystar wins its case
Dell, HP and those folk will hop onboard the OS X train
that will make a dent in Apple
by kcotham May 21, 2009 6:13 PM PDT
@pithenumber

Why would you want to see Dell and HP (who can't make a decent machine if their collective lives depended on it) put a dent in Apple? Why would you want to see them kill the golden goose as it were?
by junior_15 May 21, 2009 8:55 AM PDT
All these people that say that they will do whatever they want to with the software they legally purchase are ignoring one simple fact. The fact that they are actually buying an upgrade. Every boxed copy of OS X is sold as an upgrade. It is licensed as an upgrade and is not intended to be installed on a computer that doesn't already have OS X on it. As the only way to get OS X installed on a computer in the first place is to buy a computer from Apple, this means that only computers purchased from Apple are allowed to have OS X installed on them.

Saying that you can go buy OS X off the shelf and install it on any computer you want is like saying you can go buy an upgrade version of Windows and install it on any computer you want, even if you don't have a license for a previous version of Windows. Should I be able to go get an upgrade version of Windows and install it on my Macbook? The answer is no because the license for the upgrade version says you have to have a previous version.

This applies to all software. Manufacturers sell upgrade versions to owners of previous versions to let the users get the latest version of the software while making a little more money in the process. Usually, manufacturers also sell the full version seperately. Apple has decided not to do this.

Why aren't people compaining that they can't buy Windows Mobile seperately? What if I want to try to install it on my iPhone (or any other device for that matter)? Microsoft doesn't make that available seperately but nobody complains about that (probably because nobody would want to install it on any other device).

I personally would like to install OS X on my Dell (legally), but I think it's my place to tell Apple how to sell their products just because that's what I want.
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by hawkeyeaz1 May 22, 2009 8:44 AM PDT
It still isn't a violation of the EULA (End User License Agreement) when the EULA is agreed to (and intended for) the *end user (thus the 'EU in EULA)*. PearPC, RussinaMAC, Pystar are distributors, not the end user. The license is agreed to by the end user when they click "agree".
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