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November 14, 2009 3:36 PM PST

Judge rules for Apple in Psystar case

by Natalie Weinstein
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A judge has ruled in Apple's favor in its copyright-infringement case against Psystar, which has been selling Mac clones running Mac OS X.

U.S. District Court Judge William Alsup on Friday granted Apple's request for a summary judgment, while denying Psystar's counterclaim.

"In sum, Psystar has violated Apple's exclusive reproduction right, distribution right, and right to create derivative works," Alsup wrote in the ruling (PDF), which was posted by legal site Groklaw.net.

Apple filed its suit in July 2008, a few months after Psystar began selling Mac clones. The case revolved around Psystar's contention that it could run Apple's Mac OS X operating system on non-Apple machines. Apple denied this, stating that its Mac OS X end user license agreement allows people to install the OS on Apple computers only.

Both Apple and Psystar had a requested a summary judgment, which is a determination made without trial based on the merits of a case.

Neither Apple nor Psystar could immediately be reached for comment.

One of Psystar's contentions was fair use. The judge rejected this, stating the company "does not even attempt to address the four factors used to determine fair use." Another of Psystar's claims was "first sale" doctrine, which allows someone who buys copyrighted material to sell it. But Alsup said this doctrine applies only to legal copies, not to the "unauthorized copies" that Psystar produced.

The judge also ruled in favor of Apple's claim that Psystar violated the Digital Millennium Copyright Act. "Psystar has violated the DMCA by circumventing Apple's protection barrier and trafficking devices designed for circumvention," Alsup said.

In addition, the judge rejected Psystar's claims that Apple had misused its copyright and that Apple's licensing agreement was unduly restrictive.

Alsup's ruling did not include a permanent injunction against Miami-based Psystar because, he said, Apple has not requested one yet.

There are other claims Apple has made that could still go to trial, including breach of contract, trademark infringement, and trademark dilution. A hearing to determine remedies is set for December 14. The trial has been scheduled to begin in January.

Updated at 4:15 p.m. PST with more details from the ruling.

Natalie Weinstein is an associate editor who works out of Austin, Texas. She spent a decade as a reporter and editor in the newspaper industry before joining the CNET News staff in 2000. E-mail Natalie.
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by myles taylor November 14, 2009 3:56 PM PST
I hope this is the first domino in the set to knock down the Mac clones.

I know this is an unpopular opinion, but Mac clones only hurt the entire industry and Mac user base.
Reply to this comment
by eBob1 November 14, 2009 4:07 PM PST
Well, I beg to differ. People should be able to run software they purchase on any equipment they own. Unfortunately for Apple, the management has a "my way or the highway" attitude when it comes to their software. Because of this, they will never be more than second-class citizens in computing infrastructure and on the internet. Why do most computers run Windows and not OS X? Macs are nothing more than toys for hipster-doofusses. I am not saying the Psystar was right in what they did. I am just stating the facts.
by Perry_Clease November 14, 2009 4:11 PM PST
"Well, I beg to differ. People should be able to run software they purchase"

If they purchase it, which they didn't, the software is licensed.
by Random_Walk November 14, 2009 4:16 PM PST
I agree perfectly, Myles. Commercial outfits should not be given free rein to make a buck off of others' hard work with little-to-no compensation.

==

"People should be able to run software they purchase on any equipment they own."

People still can, and happily do so, even with OSX. However, you cannot build a company on selling cheap clone computers, because, as the article clearly states, it interferes with Apple's reproduction (hardware) and distribution (software) rights.

Please learn the differences.
by sharmajunior November 14, 2009 4:23 PM PST
Currently running 3 OSX hackintoshes. Would like to see Apple go after ordinary people. If the software is available in stores, its fair game. Anyone can use it. You don't find out about Apple's EULA until after the package has been opened, so its non returnable.
by Random_Walk November 14, 2009 4:26 PM PST
"Would like to see Apple go after ordinary people"

I doubt that they do. This was a commercial thing, not a hobbyist thing. Otherwise, they would have never open-sourced Darwin...
by nicmart November 14, 2009 4:51 PM PST
As one economist has said, intellectual property is an oxymoron. IP laws are anti-competitive, anti-consumer weapons.
by ballmerisanape November 14, 2009 4:57 PM PST
"Macs are nothing more than toys for hipster-doofusses. I am not saying the Psystar was right in what they did. I am just stating the facts."


Considering the only reason most people "need" Windows is for gaming....

Test after test.... Apple's OS proves to be better at mulitasking, networking, flexibility... you know, the important things computer savvy users appreciate.
by protagonistic November 14, 2009 5:14 PM PST
@ eBob1

Maybe you should try reading the EULAs that come with Microsoft and much of the software than runs using it before you condemn Apple.
by rationalreview November 14, 2009 5:50 PM PST
Apple can only have there compatability reputation if they don't allow outside influences in. They live in there litte box and I hope they stay there. They could never compete on Microsofts level of development and innovation with all parties that are involved, that's why they shouldn't even be put on the same market share report as MS, granted, it's a teeny tiny share.

Psystar tried to bring consumers something they wanted, they innovated, apple squashed it. It's no different than any other attempt at monopolization.
by lazycat202 November 14, 2009 5:56 PM PST
Test after test.... Apple's OS proves to be better at mulitasking, networking, flexibility... you know, the important things computer savvy users appreciate.

i had to break in! every computers have multitasking. But I don't think Apple OS is better in networking and flexibility. Computer savvy users pick linux distributions (ubuntu, opensuse, redhat, etc...) or MS because they don't be locked down by Apple. Apple software store? forget it!!
I haven't seen any IT admins carry iMacs around. Even lower IT levels, they carry Windows OS to do troubleshooting on the fields.
iMac is good for basic tasks. But when it comes to advanced tasks, Win is always on top.
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by jug831 November 14, 2009 3:58 PM PST
Psystar owners - prepare to be bricked!
Reply to this comment
by handydan918 November 14, 2009 4:04 PM PST
Psystar owners - prepare to install Linux!
Reply to this comment
by Yelonde November 15, 2009 1:42 PM PST
And prepare to be incompatible with even more of the world's software products >.<
by andrewmarran November 15, 2009 3:29 PM PST
@Yelonde: "And prepare to be incompatible with even more of the world's software products >.<"

Yelonde you are probably using a mac with windows installed on it... so please donīt be hyppocritical talking about compatibility if you run a mac.... the only way in which you can make an apple computer compatible with LOTS of stuff is if you install windows.

You should also consider that linux is a really stable system, it may lack the drivers for lots of products and the software library available is not as big as in windows..... but at least the linux developers are true to their OS and do not need to install windows on it in order to allow their users run other programs.... ohh and by the way, linux and windows users do not pay the apple tax. They can get a core i7 with a 25 inch screen a 1 GB video for less than $1500 ;)
by TX-Sunset November 16, 2009 8:29 AM PST
@ andrew

Saying the linux software library is not as big as windows is like comparing a gnat to the empire state building. If you guys are not spending half your time re-compiling your kernals, they you are busy looking for drivers. Please, until the linux platform even comes close to ease of use, please stop comparing them. And even though you don't need to install windows, many still install Wine or some other emulator so, yes, Linux still needs WIndows of some type.
by Thad Boyd November 16, 2009 3:19 PM PST
@TX-Sunset: 1995 called; it wants its talking points back.

I've had more trouble with 64-bit drivers and privilege escalation confusion under Windows 7 than Ubuntu. (Have you tried disabling UAC prompts for a program that doesn't have an installer and isn't digitally signed? I have. I had to read two different walthroughs to figure it out. And that's without getting into the fact that, out of the box, UAC is completely freaking useless as you're STILL running everything as an admin anyway; you have to change your privileges in Control Panel before it grants any measure of security. Which the average user will never do. And then when you want to extract a zip file to c:\Program Files, get ready for three consecutive password prompts.)

And if you want to talk about ease-of-use, let's talk about how you install software. What, you still have to hunt for installers on the Web? And they don't even resolve dependencies?

That is SO 1995.
by AppleProLeo November 14, 2009 4:04 PM PST
Goodbye Psystar and good riddance.

Oh well all you tree-hugging- hippies using Psystar systems - all ten of you - looks like you'll have to get a Job after all to own a Mac.
Reply to this comment
by kalel33 November 15, 2009 11:28 AM PST
I thought tree-hugging hippies were Mac owners....how things have changed.
by holyhope November 15, 2009 6:36 PM PST
I had a good paying job for 40 years, but now I run a Hackintosh, because it has better performance and video runs faster, and costs less than 200 for my used dell laptop that runs quartz extreme and all the Apple upgrades. That is the only part I feel guilty about, because the Leopard Software is yours if you bought it. I only upgrade because of fear of being hacked, uggh.
by Sumatra-Bosch November 14, 2009 4:07 PM PST
DoiStar has to have the dumbest corporate counsel on the planet. Clearly, the CEO got sold a bill of goods about fair use by a demented brother-in-law or someone who dropped out of Regent University school of law or wherever Orly Taitz attended. I hope Jobs takes all their houses, burns them to the ground and takes the DoiStar guys as slaves.
Reply to this comment
by baconstang November 14, 2009 5:34 PM PST
THAT is a great image!
by Bertbaby November 16, 2009 9:25 AM PST
Yeah, the world is once again safe for closed, proprietary computer systems!
by thelemurking November 16, 2009 9:59 AM PST
Perhaps he can harvest their organs... since he already lacks the morals in that category.
by crowbarofdeath November 14, 2009 4:08 PM PST
As much as I hate Apple, this was the right decision. Apple developed those technologies and only they have the right to distribute them.
Reply to this comment
by voyager529 November 15, 2009 8:17 PM PST
Apple *did* distribute copies of OSX...to Psystar...over the counter...and Psystar paid for them. The right to distribute OSX never left Apple's hands (although you might make a case for the OSX license forbidding distribution of a derivative work if you consider the hardware/software combination they were selling to be "derivative"). It's not like Psystar got all the copies off of Limewire or something like that.
by TX-Sunset November 16, 2009 8:31 AM PST
I can not believe people condone this monoply. This is clearly a violation of anti trust laws. If microsoft made their own branded PCs and said Windows can only run on our PCs, don't you think everyone, including God, would file a law suit against them. The Judge is wrong. Apple must have promised him a new Macbook every year for the rest of his life or something.
by Renegade Knight November 17, 2009 7:29 AM PST
Per the Apple EULA I can also distribute their operating system in several ways with their blessing.
by shuyin84 November 17, 2009 9:42 AM PST
TX-Sunset- they are 100% allowed to do that, they created a product, and they are allowed to do with it as they wish, plus, what about the zune. Your not allowed to use that on anything except windows. kinda the same deal eh.
by Gold_Storm_Mac November 14, 2009 4:18 PM PST
this is a good thing.
Reply to this comment
by Perry_Clease November 14, 2009 4:24 PM PST
I urge you all to go read the Judge's ruling to which Natalie linked http://www.groklaw.net/pdf2/Psystar-214.pdf

There is some real interesting info there.
Reply to this comment
by Random_Walk November 15, 2009 8:08 AM PST
I'd like to add my voice in supporting Groklaw - Pamela Jones has built one very geek-friendly legal blog over the years (and the very same blog was instrumental in taking apart SCO's assertions in a way that simply infuriated McBride and Co.)
by Renegade Knight November 16, 2009 11:35 AM PST
If I read that right, when I turn on my Mac, I'm infringing when it loads a copy of the OS into RAM even though that's by Apple design.
by Renegade Knight November 16, 2009 11:49 AM PST
If I read that right, when I turn on my Mac, I'm infringing when it loads a copy of the OS into RAM even though that's by Apple design.

They also tripped over their own logic. To make a computer you clone the drive. It saves time. The case PsyStar presented showed where the Sheriffs office was OK cloning drives and they only ran into a problem when they cloned more drives than they has lisences. Later they say that PsyStar wasnt' able to clone drives without infringing yet when us users change a drive we have to do that to get back up and running. They used the unauthorzed manufacturing method (same methods Apples Chinese cohorts use no doubt) to invalidate the first sale doctricn when in fact the first sale would have covered the OS X being sold, not the cloned version.

Mostly, I find that PsyStar didn't have a good legal team as there were issues with the case and facts that cost them the case that had nothing to do wiht the issues. The judge did us all a disservice by letting process and procedures get in the way of the legal principals.

Another interesting bit. Replacing OS X files with PsyStar files without modifying or hacking the OS X files (meaning they did no deratiave work) was considered deravative work just the same.

Still it all comes back to the judge spanking PsyStar for having a crappy legal team instead of looking at the real issues.
by Thad Boyd November 16, 2009 3:24 PM PST
@Renegade Knight: holy crap, you're right.

"Apple also alleges that every time Psystar turned on Psystar computers running Mac OS X then another copy was made in random access memory."

Because if they count a copy made into RAM as a copy, then it doesn't fall under the "single backup copy" that the license allows.
by aafuss November 14, 2009 4:27 PM PST
What about foreign clone companies-I'd imagine Apple would have strong winnable claims like they did just now.
Reply to this comment
by Perry_Clease November 14, 2009 4:45 PM PST
Different jurisdictions of course, but probably similar laws in this regard.
by Vegaman_Dan November 14, 2009 10:11 PM PST
This has no impact whatsoever on those operating outide of the US.
by Random_Walk November 15, 2009 8:10 AM PST
Yep - IIRC, there's a clone maker in Germany that has been around as long as Psystar has, and has yet to see so much as a C&D notice. Laws differ quite a bit on occasion.
by Goodbye Helicopter November 14, 2009 5:01 PM PST
You can find out the EULA agreement before purchase. It is public information. Available online, and upon request. All companies are more than willing to provide this information before a sale and they are legally required to do so. You are allowed to return the product and get a refund if you reject the terms of the EULA. It is foolish to assume you have certain rights because you think you purchased an object, when in fact you have purchased limited rights to use of intellectual property contained within a medium.
Reply to this comment
by Vegaman_Dan November 14, 2009 10:12 PM PST
Even those that read it still choose to violate it intentionally. I don't understand the mindset that chooses to do so though.
by Random_Walk November 15, 2009 7:54 AM PST
"Even those that read it still choose to violate it intentionally. I don't understand the mindset that chooses to do so though."

Funny, you yourself have claimed to have done exactly that, by your definition.

(now, if you had an Apple sticker on the side, you would have fulfilled the terms of the EULA.)
by Random_Walk November 15, 2009 8:21 AM PST
". It is foolish to assume you have certain rights because you think you purchased an object, when in fact you have purchased limited rights to use of intellectual property contained within a medium."

Depends.

Privately, violating a EULA is not against any law so long as you legally obtain the material, and do not distribute the result (that is, buy the disk retail and don't sell the Hackintosh). If anyone, (e.g. you or Dan) can find a law stating otherwise, I'd love to see it. A EULA only establishes the responsibilities of the seller and buyer with regards to one another. Violating a EULA breaches that contract, but does not rescind any rights you have to property which you obtained legally (cf. Fair Use rights). The only thing Apple can really do in this regard is to no longer be obligated to provide you with tech support, warranty fulfillment, or similar.

Now commercially, things are different. As a company, you are no longer the end user, and would be violating Apple's right to distribution and etc. as noted by the judge in the article in his summary judgment. As a commercial entity, you would not have the right to Fair Use, First Sale Doctrine, or any similar rights that individuals have.
by JediJohn82 November 14, 2009 5:17 PM PST
Microsoft should take heed of this decision! Now they can build their own PC's not let any third-party's (Dell, HP, etc) use Windows. No, wait, then people would cry foul and say it was a monopoly...how does Apple get away with a hardware/software monopoly when Microsoft can't?
Reply to this comment
by buddhafw November 14, 2009 5:23 PM PST
right on
by rattyuk November 14, 2009 5:30 PM PST
@JediJohn82
Because they built the widget and the widget is what sells.

This is not a battle against the hackintosh community it is a battle against some thieves who took Apple's IP and the Hackintosh communities IP and then SOLD that work on. Microsoft would REALLY love it if this succeeded because anyone could buy a LOW end copy of Windows - say the 29 buck student edition and then a company - say Psystar - could "modify" it and sell it for 34 bucks. Way to go. Do you think even Ballmer would be happy with that?
by baconstang November 14, 2009 5:45 PM PST
No, everyone (esp. enterprise) would switch to Linux.
by rationalreview November 14, 2009 5:56 PM PST
Linux, stay in your box. Microsoft isn't in that business, that's why they own Intel, HP, Dell, Gateway, Acer, and any other company in the world that installs the widely used (95%) Microsoft OS and accesory products, at least on an intuitive level. Those companies would not exist without Bill Gates and his marketing genius. Apple, again, has proven they are afraid to let innovation happen and are abviously terrified in letting someone else into their teeny box Jobs lives in. Don't jump on my MS comment because it is easier to prove that MS allowed greater innovation than actually hindered it. We might be using 33mhz processors still without the windows push.
by Random_Walk November 14, 2009 6:36 PM PST
Oh, Microsoft could... and face an instant and massive loss of income, expecially as Dell, HP, Lenovo, Acer, Sony, Toshiba, and etc immediately develop Linux-based alternative OSes, helped massively by Google.

...and I sincerely doubt that Microsoft would ever want to face such a prospect on the consumer level, let alone in servers (where such a switch would be far, far easier to do).
by vanax November 14, 2009 7:23 PM PST
Because monopolies are legal in the US. Next!
by SteveW928 November 14, 2009 8:18 PM PST
@ JediJohn82 -
Read up on what a monopoly is any why they are limited as a check and balance on the capitalist system. Your question will be answered.
by jumpjetta November 14, 2009 9:12 PM PST
"how does Apple get away with a hardware/software monopoly when Microsoft can't?"

Last time I checked, MS was the convicted monopolist, and Apple had less than 10% of the computer market. Apple is a monopolist how exactly?
by justin2698 November 15, 2009 7:12 AM PST
JediJohn82, That is the most insight opinion I have read about this case yet. It is strange how Microsoft gets punished (my paycheck is thanks to Uncle Bill's shrewd business tactics) but I use a Mac by choice at home. It is a real Mac but I would like to have the choice of buying the premium package of Apple and OSX. Or just buy OSX and install on generic Intel hardware.
by mluvas November 15, 2009 10:29 AM PST
Because Microsoft is run by idiots whose founder/ex-ceo ran away to battle the mosquito's in Africa.
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by buddhafw November 14, 2009 5:22 PM PST
So apple sells software that can only legally be used with their hardware? Would Microsoft be allowed to require you to purchase a special card, or a system made by Microsoft to run windows 7? I say no, there would be antitrust and consumer advocates salivating at the mouth. I mean seriously Bill Gates is evil, but Steve Jobs must be the devil to come up with this load of intellectual wipe my butt protectionism, no wonder he is rotting from the inside.
Reply to this comment
by stan2w November 14, 2009 11:09 PM PST
buddhafw

what a despicable comment about someones' illness......
by kelmon November 15, 2009 11:07 AM PST
"Would Microsoft be allowed to require you to purchase a special card, or a system made by Microsoft to run windows 7?"

Yes. This isn't a difficult question. If Microsoft wanted to get into the hardware business then they could and restrict the software that they write to only run on their hardware.
by Seaspray0 November 15, 2009 5:16 PM PST
@kelmon. They could, but one of the apeals of windows is that it runs on everyone's hardware. By not locking it to hardware, it makes it demand accross all the hardware platforms.
by caseyboy November 15, 2009 10:44 PM PST
"No wonder he is rotting from the inside." Really?

I think mentioning someone's personal health (particularly in such an offensive way) when commenting on a story related to tech news and a legal decision is beyond the pale at best and just plain mean spirited at worst.
by Renegade Knight November 16, 2009 11:56 AM PST
@kelmon

They arleady do require special things to run Windows. You need to activate. Online, or via phone. If MS pulls support at any time the OS becomes crippled and you would have to hack it to make it work right.
by shuyin84 November 17, 2009 9:50 AM PST
so i take it from ur comment on steve jobs health that ur a PC. and by PC I mean Piece of Crap
by jayprob101 November 14, 2009 5:26 PM PST
Here's a thought. What if big bad monopolistic Microsoft tried to do this. Imagine if they changed their terms of service to this, came out with their own computers and screwed all of the manufacturers like HP and Dell. Would a judge have the same ruling then.

Imagine HP being sued for installing Windows 7 on their Desktops. The company owould tank, Microsoft would buy them out for cheap. And this would all be legal. Remember, this case sets the precedent.

Trust me, that would never fly...
Reply to this comment
by rattyuk November 14, 2009 5:33 PM PST
@Jayprob101
Trust me Microsoft don't have the business model to do this. BTW how is your Zune OS doing running on a Zen? How is your Xbox 360 software doing running on the PS3. You see Microsoft has areas where it does indeed do this. But they would NOT lock down their OS too many business partners to upset - oh wait - generally being a business partner of Microsoft is an open invitation to be shafted - how is that "Plays for Sure" device running now?
by baconstang November 14, 2009 5:46 PM PST
Again, people would be forced to switch to Linux.
by rationalreview November 14, 2009 6:00 PM PST
Microsoft doesn't lock down there OS to anyone who legitimately buys it dumb dumb. There is no demand for the Zune or Xbox OS on any other item either. That's comparing an apple to an orange freak. Don't passively slam their business model either. Apple is a WAY behind in this. They continue to sell novelty toys that get attention but never truly make a large market impact and last. Millions of people had better pray that MS never designs it's own proprietary hardware and only run windows on them. Those millions will be out of a job, and I mean HP and the like. Apple has always been uptight about their products, like clinched cheak tight, and it will be a failure of there's long term. They've almost collapsed twice, only a matter of time.
by Random_Walk November 14, 2009 6:41 PM PST
"Microsoft doesn't lock down there OS to anyone who legitimately buys it dumb dumb"

...wanna know what happens if you modify the OS on an XBox, or modify the XBox itself, then try to sell those mods? Also, Microsoft would quickly prevent you from modifying Windows 7's source code and selling the results for any reason.

You are of course free to prove me wrong, if you're capable.

So before you make any pronouncements, you may want to do a bit of research, eh? ;)
by awair November 14, 2009 7:40 PM PST
'big bad' is charging $150 for its OS - why tie down the hardware - "We'll sell to anyone (stupid enough)..."

Unfortunately that includes me, my new home built PC won't run Mac OS using a bought & paid for $29 legal copy of Snow Leopard (using PsyStar's RebelEFI software).

I would love to have the choice, I know that I would be a 2nd-class Apple citizen (my choice) - BUT the vendors are also free to determine their own EULA - and the software WAS refundable after opening.

It's up to the courts to decide - oh - and they have.

My choice still, it just doesn't include running Mac clone.
by Random_Walk November 15, 2009 7:57 AM PST
@Dan:
Kindly stop acting the fool, and stop descending into ad hominem - you only make yourself look like an idiot when you do that. Your argument has been countered repeatedly and demolished repeatedly.
by kelmon November 15, 2009 11:09 AM PST
There might well be a problem if Microsoft locked Windows 7 to their own hardware but probably not with anything that comes later. Chances are, however, that companies would switch to Linux so that they can have a choice in hardware providers. This is one of the principle reasons why the Mac is not used much in the enterprise.
by TheraCaffe November 15, 2009 11:59 AM PST
@rattyuk

That Zune OS and Xbox OS situation is completely different. Those are firmwares; they are not marketed as an operating system. A firmware is designed to remain firm to specific hardware. If Apple changed the name of Mac OS to Mac Firmware, then that would be different. But no, it's Mac OS, and it claims to run on a computer, so it should be sold as what it is: Mac Firmware.
by mandelbomb November 16, 2009 9:23 AM PST
By the way, Micro$oft does tie hardware to their OS. Simply by making bloat ware, they force you to upgrade your PC every time they release an OS. Not only that, but Microsoft forces you to buy and x86 style processor. If MS was any different than Apple, then you could install your Windoze on a PowerPC processor or any other flavor. They protect their monopoly just like Apple does.
by shuyin84 November 17, 2009 9:51 AM PST
way to join the 9 other comments before u that have been explained
See more comment replies
by CraigC2000 November 14, 2009 5:36 PM PST
I'm not sure I appreciate this because it's a fairly dangerous precedent.

Apple is claiming in this case that it is illegal for anyone who purchases Mac OS to install it on anything other than Apple branded hardware. The fact that they are currently only targeting Psystar is irrelevant, the legal precedent is that it is illegal to install the OS on a non Apple branded hardware, even if you purchase the software and install it at home.

Should a software company really have the right to dictate the hardware that it runs on legally? Technically, this ruling would give the right to Microsoft to make it ILLEGAL to install Windows on a PC that had an AMD processor, or an Nvidia graphics card, or even a Logitech mouse if they chose to.

(Ignoring the obvious antitrust issues, the exact same precedent applies if Microsoft chooses to license Windows to only run on a machine with an Intel processor, or a Microsoft mouse)

The point is, the only thing that is stopping Microsoft from legally being able to dictate all PC hardware is the fact that they are a monopoly. If and when there is a legitimate contender in the OS space, then antitrust wouldn't apply anymore, and both companies would have far too much power to control PC hardware.

The bottom line is that no software company should be able to dictate the hardware that we run the software on. They don't have to make it easy, or even cheap, but once we buy the license we should be able to use it any way we choose for personal use.
Reply to this comment
by jragosta November 14, 2009 5:46 PM PST
"I'm not sure I appreciate this because it's a fairly dangerous precedent."

BS.

It was a foregone conclusion. The judge HAD to rule that way or he'd be overturning almost all of our copyright law. Think of the consequences if he had ruled in Psystar's favor:

1. Software vendors would no longer be able to sell an OEM version. After the software left their hands, it could be used on new equipment or by a DIYer.
2. Software vendors would no longer be able to sell an upgrade version at reduced price. There would be only one price for software - whether it were used on new equipment, existing equipment, upgrade, whatever.
3. Software vendors would no longer be able to give a discount for quantity purchases. IBM probably buys Windows for a license fee of $10 or 20 per unit - but they would be free to sell it on the open market for whatever price they wished.
4. There would be no way to prevent reverse engineering of software. I could buy a copy of Windows (probably one of those $10 IBM site licenses), modify the launch screen with my own name and sell it as my own product.
5. Home DVDs are for personal use only. You can not legally use it for commercial purposes or public displays. That restriction would no longer be binding.
6. Book copyrights would disappear. Once you buy a book, you would be free to reprint it with your own cover and call it your own work.

And so on.

Anyone who sells software for a living (or any other intellectual property for that matter) should be thanking Judge Alsup.
by baconstang November 14, 2009 5:47 PM PST
Write your Congressman to rewrite IP law.
by CraigC2000 November 14, 2009 6:45 PM PST
@jragosta,

How do absolutely any of those arguments apply to being able to dictate the HARDWARE that the software is installed on?
by CraigC2000 November 14, 2009 7:05 PM PST
@jragosta,

Just in case you didn't read the ruling,t he argument that Psystar was making was that it was legally entitled to install the OS because Psystar had PAID for the software, and that it was free to install it anywhere it chose to based on fair use.

It had nothing to do with overturning copyright law. Perhaps you should read the judgement before you go off on your rants?
by jragosta November 14, 2009 7:51 PM PST
I read the judgment. It simply states that the principles of copyright law apply in this case and rights of first purchase don't apply. It also specifically upholds the EULA. If Psystar had one, EULAs would be unenforcable - which would lead to all the issues I cited above.

The fact that you're not bright enough to follow the logic is your problem, not mine.
by SteveW928 November 14, 2009 8:25 PM PST
@ CraigC2000 -
"Should a software company really have the right to dictate the hardware that it runs on legally?"

Umm, yea... that's why it is called a software license. You don't 'own' the software, you've licensed the right to run it under certain conditions. That said, I doubt Apple is trying to mess with how home users are using their products (they could, but I doubt they ever will). It is fairly obvious why they went after these guys.
by klh2000 November 14, 2009 8:46 PM PST
Hey CraigC2000.

So do you know what a license is? I think not.

Lets look at your drivers license. Driving is not your right. It?s a privilege given to you. Your license can be taken away when you break the law. Software is the same thing. You don't own it. Your given permission from an authority (software company) to own it or use it. If you use it illegally or pirate it or change it they can refuse your license and you lose the right to use it. WOW, what a concept.

LIke music. I'm assuming your one of these people that thinks when they buy the album they can do anything they want with it. Change the words or the notes and then its ok to sell as your own. Sorry. Same concept.

So the bottom line is that no software company should be able to dictate the hardware that we run the software on. Really. You are an idiot aren't you? And how many of these people you are taking about are using this software strictly for personal use?
by Random_Walk November 14, 2009 9:18 PM PST
@Craig:

No, the case states that you could not clone Apples in a commercial enterprise. And yes, Microsoft can dictate hardware requirements at any time they desire... for instance, try running Windows 7 on a PPC or Sparc processor.

"If and when there is a legitimate contender in the OS space, then antitrust wouldn't apply anymore, and both companies would have far too much power to control PC hardware."

Err, you may want to look around. Linux has a huge chunk of the server space and dominates the web space. Apple is growing like wildfire in consumer PCs and specially in the mobile arena. FreeBSD is still top choice when security is vital. There are legitimate OS contenders out there :) Perhaps you meant 'sufficiently large in marketshare'?
by OS11 November 14, 2009 9:46 PM PST
No, they are simply saying if you try and "profit" from their hard work, they will win in court. But for personal use, they aren't going to come after you. It's as simple as that.
by foodandart November 15, 2009 9:45 AM PST
You're missing the point Craig.. Apple makes BOTH the hardware AND also software to run it. They are built to be mutually exclusive to themselves.

The monopoly issue comes up with Microsoft more often because of their licensing 'agreements' with the PC computer vendors. (I tried some years ago to order a custom built Dell WITHOUT Windows pre-installed - just a blank hard drive with Windows on an install disk thrown in - and it couldn't be done. They would not do it.)

Eventually I gave up and bought an Apple computer instead.

To be honest, I'm not one of those that was happy with the switch to Intel CPU, but I understand the reasons behind it. It does open a can of worms now that with a few minor tweaks one can install OSX on a hackintosh - I figure that it is only a matter of time that someone running OSX on of those boxes fingers a way to totally blow the security to pieces and it ends up as compromised as the Windows platform. I am not looking forward to that fiasco.

With that said, I don't disagree with hackintoshes at all. I do think they are neat, but the people that build them know full well that any OS update could break the system (as the Intel Atom users found out recently), but it is the price they willingly take to build their machines.

This issue with Psystar building systems is too dodgy for my tastes simply because it IS a hackintosh machine and Apple doesn't have to, and won't, focus on making sure that the software stays compatible with hardware that they don't use/source for their computers. Psystar users then have to wait to get updates - and to be honest.. many who buy these systems pre-built do so because they don't want, or know, how to build a computer on their own.

If you want a hackintosh.. you should bite the bullet and learn about computers and build one yourself!

(my next computer will be a hackintosh.. and HOW!)

Regards,
See more comment replies
by kriticalthinker November 14, 2009 6:01 PM PST
Sure... let a company spend 150 mil to design a system that works perfectly within itself, then clone it and run it on your computer which has paid no licensing whatsoever to the engineers, designers and creative people who made the system. Psystar and any individual or company that acts like this is a LEECH. Understand the meaning of LEECH? Any bloodsucker who sucks the blood of others under the pretense. Psystar? Try garbage star.
Reply to this comment
by Lerianis3 November 15, 2009 5:55 AM PST
When these people are PAYING for the updates, they are not leeches at all. These people were PAYING FOR LEGALLY BOXED COPIES OF OSX... that means that Apple was getting their money and that they were not 'leeches' at all.

By saying that they are, you are only exposing yourself as an idiot of the first caliber.
by polaris20 November 15, 2009 6:19 AM PST
@Lerianis

actually it's you who has a serious conprehension problem here. They are only legally boxed copies of OSX when they're installed on Macs. You see, in case you haven't noticed, Apple is a hardware company. That's where they make their money. They sell the OS cheaper than MS does because they've already sold the computer.

If Psystar were to win, it would disrupt Apple's business model, and you'd be paying $299 for OSX.

See how that works? Also, the $29 license for SL is only if you already own Leopard. If not, that is also a violation of the EULA.

It's amazing how the Internet is so filled with people who have no clue when it comes to software licensing and business models.
by TheraCaffe November 15, 2009 12:12 PM PST
@polaris20

"It's amazing how the Internet is so filled with people who have no clue when it comes to software licensing and business models."

I got a laugh out of that. Not that I'm disagreeing with you; it's the fact that you think everyone should know this stuff that I find hilarious. It's not like it's common sense or grade school knowledge. It's like saying, "jeez, I can't believe how many people out there don't understand the inner workings of the endocrine system" or "wow, the amount of people who aren't rocket scientists just blows my mind" or "really? You mean you don't understand the concept of m theory physics? You're an idiot."

You can't expect that just because you know something that it means everyone else does as well, especially if it's something that most people only have a basic understanding of, such as this. It just makes you sound like an arrogant *******, really. ;D
by Seaspray0 November 15, 2009 5:37 PM PST
"... to the engineers, designers and creative people who made the system." Those engineers that work for the 3rd party vendors who made the DVD drive, graphics card, CPU, hard drive, memory...? Lets be clear here. Apple did not design everything that goes into a mac. No OEM does. So when the EULA states it must run on apple branded hardware, that's just the sticker on the case... not what's inside.
by Renegade Knight November 16, 2009 7:31 AM PST
PsyStar paid for OS X. If anything Apple got more money for support that they never needed to provide.

The legal basis for this claim was actually Apple saying 'Yeah, we got paid for our work, but we don't want you to use our work for your purpose regardless'.

@polaris20
Your comprehension is lacking.
If I pay for Apple software I'm good to go. Stop and think. I bought it I own it. I there is no problem. Can you find one? No? Didn't think so. So now I install my perfectly good and 100% legit software on a computer. Is there a problem? You don't know because now you have to ask "what did you install it on?" I may be good, or I may not be good. Strange when did my legal softare magicly turn illegal? I didn't pirate it after all. And therein is the flaw in logic.

That's the problem. I can own it and I'm goot so long as I do nothing, or install it on an apple branded pc.

Of course Apple sued (as you did notice) over a business practice. They want to be the only ones selling macs. That's why they stabbed their clone partners in the back when Jobs took over the second time.
by shuyin84 November 17, 2009 10:00 AM PST
so if they were buying copies from apple, doesn't that break resale laws, i thought you couldn't buy something then sell it as your own
by sdf0013 November 14, 2009 6:03 PM PST
I guess I would like to know at what point Apple or Mac is a kind of micro-monopoly; if you get my meaning.
Reply to this comment
by Perry_Clease November 14, 2009 6:38 PM PST
There is nothing illegal about being a monopoly, micro or macro.
by sdf0013 November 14, 2009 7:20 PM PST
I didn't say it was illegal. I was merely looking for the classification. Based on some quick googling, since I'm not a lawyer, it does appear that Apple is in-fact a form of Single Seller monopoly when it comes to the Mac platform.
by TheraCaffe November 15, 2009 12:17 PM PST
@Perry_Clease:

Since when are monopolies legal? If they are, then it just goes to show how much of a failure the American public school systems are, because every history class I've ever taken disagrees with that declaration. Didn't the Standard Oil Company get in trouble for being a monopoly?

I'm honestly asking these questions, by the way, because I've always thought otherwise. I'm not trying to argue with anyone, just trying to discern the current truth.
by shinji257 November 15, 2009 11:57 PM PST
@Perry_Clease: A monopoly is definitely illegal when the act is anti-competitive. Microsoft as a monopoly is illegal. Apple is not a monopoly. They just have some very restrictive agreements (which I don't necessarily agree with).
by bluemist9999 November 16, 2009 3:13 PM PST
I think a monopoly is when one producer effectively owns a marke.

Also, technically I don't think a monopoly is illegal---it is when a monopoly in one area is used to gain dominance in another area, that it is illegal. Microsoft having around 90% of the OS market isn't illegal. Microsoft using that market dominance to, say, boost its Internet browser at the expense of other browsers, is illegal.
by Renegade Knight November 17, 2009 7:37 AM PST
Apple isn't a monopoly. They make an OS and only want it on their computers. It's not different than the firmware in your car. Ford's firmware is only in fords, They won't like if you modify the cars program or replace it with another.

Operating systems being more generic are similar though much more likely to have folks like me who hate Like OS X but don't like the MacBook's wish we could install it to create a computer that works better for us. That's when the Apple policy becomse a problem. Apple may like to preclude reselling their OS on a computer, but I claim fair use to install an OS on a computer regardless of who made it (Apple doesn't make their own computers hence the "apple branded wording in the EULA).
by sparrowhyperion November 14, 2009 6:36 PM PST
A perfect example of the best justice Money can buy... The whole patent/copyright system leads to stifled innovation, higher prices and a lot of hassle for the courts. Make all knowledge truly free, then let companies compete based on quality, price and service. Oh no.... That would make way too much freakin sense.
Reply to this comment
by jragosta November 14, 2009 6:42 PM PST
"The whole patent/copyright system leads to stifled innovation, higher prices and a lot of hassle for the courts."

That's BS, too.

Without intellectual property protection, how much money do you expect that Apple or Microsoft would put into OS development? They'd sell one copy and then the other millions of users would download it free.

Why should Intel put billions of dollars into R&D if AMD can just steal the designs and process technology?

Why should Merck spend hundreds of millions of dollars to develop a new drug if anyone could copy it?

What about musicians, artists, and authors? While there are undoubtedly a few who do their work for sheer enjoyment, but the vast majority do it so they can earn a living.

Intellectual property protection is what drives the world's economy. Arguing that it should be eliminated demonstrates an incredible lack of understanding of how business works.
by Random_Walk November 14, 2009 9:23 PM PST
There is a balance to be struck in the fields of intellectual property.

Copyrights are vital for the first few years of a work's existence, as they protect the work and allow it room to grow, much as a seedling needs shelter when it first sprouts. Same with patents.

The problems lie with excess.

Copyrights were originally limited to something like 27 years - more than sufficient. Nowadays, they're extended to an ungodly length of time, well beyond even the work's original usefulness (you can thank Disney for that one).

Patents have their use in tangible concepts, and the term of time is still consistent. The problems lie in patenting software - software should remain covered by just copyright, and remain unpatentable - just as you cannot patent a mathematical algorithm, you really shouldn't be able to patent software... yet we stupidly do just that.
by Perry_Clease November 14, 2009 6:43 PM PST
How many posters here have read the Judge's ruling, raise your hands.

Okay, you, you, and you can leave class early. The rest of you need to read the ruling, it will save you a lot ignorant posting. Natalie was kind enough to share the URL with us, thank you Natalie. In case you missed the link, it was in blue colored text, here it is http://www.groklaw.net/pdf2/Psystar-214.pdf
Reply to this comment
by Mr. Dee November 14, 2009 6:51 PM PST
Psystar owners, there is a home for you in Windows 7.
Reply to this comment
by SteveW928 November 14, 2009 8:26 PM PST
I doubt anyone who would have bought a Pystar is going to settle for Win7. They were looking for a cheaper way to run a real OS. ;)
by TheraCaffe November 15, 2009 12:24 PM PST
Well it's not like they have to give up their systems, do they? If you already own one, they can't take it back. The only way Apple could do that was if they somehow figured out how to disable Psystar systems and lock them out from updates, but that would only work if Psystar were complete idiots in installing Mac OS X. If they did it right, then the OS should be convinced that it is running on a legitimate Apple computer because it would be running in a hardware emulated EFI system which would be indistinguishable (to Mac OS X) from a real one. If they just kind of hacked around it with some nefarious software, then well, those Psystar buyers got ripped off.
by shuyin84 November 17, 2009 10:03 AM PST
to bad that home is filled with pests and bugs, microsoft needs a new home
by simplybernie November 14, 2009 7:29 PM PST
Bill Gates recently said, "Apple is in a bit of a different business (than Microsoft) where they make hardware and software together."

So comparing Microsoft to Apple or Dell to Apple is like comparing McDonald's (PCs) to Dave and Busters (Apple).

What Psystar did was found illegal in the court of law. It was wrong in many of our opinions. While, I have built several Hackintoshes for fun, I own 2 G5s, 3 mac-mini's and 2 macbook pros. When I need technical support I am on my own in regards to the Hackintoshes, while Apple provides top notch customer service their products. For the typical user, Psystar's computer is more hassel than what it is worth because you can't update your OS normally and you don't get top quality support when updates breaks your system.

Now, my Hackintoshes also double as PCs. Honestly, as a Windows user I am disappointed that I am still using XP (which makes transitioning to Windows 7 a pain in the butt).

While Macs aren't for everybody, I think Macs are a great platform with excellent customer service with none of the pains that PCs go through. However, the best gaming platform in the world is the PC and Microsoft is about to wipe that out with the X-Box.

So maybe people should be taking their shots at Microsoft for the they've been mis-handling the PC industry the last 20 years.

Love,
I'm a PC (and a Mac) and my upgrade to Windows 7 sucks, so does Modern Warfare 2 on the PC.

LOL.
Reply to this comment
by Gold_Storm_Mac November 14, 2009 7:34 PM PST
MW2 is the best on the PS3
by franzenk November 15, 2009 6:54 AM PST
I have to say out of all the comments, this one is the best. I don't like it when people rant about an OS system they have never used. I have a MacBook pro that runs Snow Leopard, paralells that runs Win7 and I just installed Ubunto (Linux) to try it out. After I am done I will be able to say which I prefer and which one I think is best because I tried them all out. Still after that it will be my opinion and not a fact. Now I don't know law and I am not well versed on this whole situation but what seems right to me is that Apple is not a monopoly because they do not control all the computer platforms, only Apple. The reason Microsoft got hit with a monopoly lawsuit is because, if I remember correctly, they were trying to make IE the only browser by giving it for free. It was not allowing for other competition for the entire browser market. It was forcing web companies to make their web pages IE compatible only which also fueled the monopoly lawsuit. If I am wrong in my thinking I am sure someone will tell me but for me, that is what I think. Plus I was married to a lawyer when she was going through law school and the one thing she was taught was that being a lawyer is not about being right or wrong but it is about who can argue the best case. So money does buy great lawyers. This isn't about right and wrong its about who can argue their side better and with Apple's money their side won.
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