Judge dismisses would-be ‘Mac cloner’ Psystar’s bankruptcy, blocks stays against Apple

“Psystar, the company Apple is suing for allegedly building and selling Mac clones without authorization, has been granted its motion to dismiss its Chapter 11 bankruptcy case in Florida. The Judge overseeing the case, however, included the stipulation that if Psystar files for Chapter 7 bankruptcy protection Apple’s case against the company in California will not be subject to an automatic stay,” Jeff Gamet reports for The Mac Observer.

“According to the court order, Psystar has also been blocked from filing for Chapter 11 bankruptcy protection for six months, and Judge Mark, the Judge overseeing the company’s bankruptcy case, is maintaining jurisdiction over the case so he can enforce the terms of his order,” Gamet reports.

Gamet reports, :”An attorney familiar with this type of case told The Mac Observer, ‘What this means is that Psystar won’t be able to use either Chapters 11 or 7 of the Bankruptcy Code to avoid trial in Judge Alsup’s court, for if at the conclusion of six months proceedings are still going forward in Judge Alsup’s court, I am certain that Judge Mark will not allow Psystar the protection of the Automatic Stay, should it file another Chapter 11 case.'”

Full article here.

[Thanks to MacDailyNews Reader “James W.” for the heads up.]

24 Comments

  1. I normal words Psystar pissed in the Judges coffee cup and the Judge is saying that if you re-file for bankruptcy later you have to come back to me and you will not be allowed to delay Apples case if you re-file bankruptcy again. Also for the next 6 months the only type of bankruptcy available will be dissolution of your company.

  2. Good riddance.

    Although, the mid-sized tower they were/are making is the kind of form factor Apple should look into. It would fill the gaping maw in the “headless” Mac lineup between the MacPro and the Mac mini. The iMac doesn’t cut it.

    There are a lot of design and content creators who would eat it up.

    Right now, everyone I know in those fields have a MacBook Pro and an external monitor. Very few use iMacs. Not everyone needs or would ever use 4 internal drive bays, etc., but WOULD like to be able to use a high-end video card AND be able to select monitors of their choice. (I’ll avoid matte vs. gloss)

    I’d love the power and kick of a MacPro in a box about 1/3 of the size. Same processors and RAM slots, 2 internal drive bays for RAID capability. 2 PCI slots (1 for video) and SATA ports. How about FireWire 3200, too. AND use a LOT LESS electricity!

    Sure, it would cannibalize some sales from the other lines, but it would also be a big draw for switchers.

  3. I’m with you, Mr Reeee. I have to say, though, that the iMac is now a very capable machine, and quite satisfactory for most basic print production chores. The problem is that you cannot expand your work on it, should the need or desire arise, due to its limited upgradability. That is the irksome part. There now a $300 difference between the top end iMac and the low end Mac Pro. I’d love to see Apple bring the machine you describe at somewhere just below the iMac top end price. The iMac would still sell; it is actually a great machine, and many love the form factor.

  4. I can explain; I read something about bankruptcy once on Enderle’s site. MAC’s days of draconian, proprietary lock-in are over. The judge’s ruling opens the door for potential cloners to license the MAC OS but they won’t because A) MAC can’t play games, and B) MAC doesn’t work in the enterprise, C) MAC OS “computers” can’t compete with the low-cost, tightly integrated xBox 360/Zune/Vista ecosystem. Psystar was misguided from the start.

    Your potential. Our passion.™

  5. It’s over for Psystar and they know it. They’re desperate and are trying anything.

    Hmm, where’s rattymouse? He usually posts within minutes claiming good news, except lately. I guess even he sees the writing on the wall or is his Psystar ripoff acting up again?

  6. While I do think a used or previous model Mac Pro fills some of those needs, yes Apple needs something between the mini and the Pro. As long as EULA’s are legal and binding, Psystar had no chance of winning.

  7. Why is this taking so long? this should have been a slam dunk for Apple, if Psystar got away with this, what prevents other companies from doing the same to other software.. I am going to bundle Office with my new PC without paying for it, screw you MS.

  8. Ahhh the balance between justice and civil liberties.

    The Judge is looking for a resolution and psystar’s customers need to be coddled for another six-months. Dickwad’s like Rattymouse who allegedly bought one of their machines will make it a Mac next time. Because you know what they say…

    I agree with Mr Reeee, <b>Jonathan Ive needs to resurrect the Cube.</i> I’m thinking Grand Central and a Bullet Train

    Call it Cube Twenty-four, for the number of processors, and couple it with the LED Cinema Display and I’m in combat heaven. What a sweet Autodesk rig that would be!

    And no power brick! But give it 8 gigs of ram, a terabyte drive, BR optional, and the best video card “PC money” can buy.

    Make the sumbitch a Signature model as a homage to Steve Jobs and I’ll take two!

  9. The judge obviously suspects Psystar of using bankruptcy to avoid facing Apple in court. Judge Mark has removed the automatic stay of proceedings but left the option of declaring bankruptcy which requires dissolving the company. Basically he’s removed everything from bankruptcy except bankruptcy. Psystar can still declare bankruptcy, but the only benefit they will get from it is bankruptcy. He’s also recorded that if Psystar does seek bankruptcy, the case comes to him. This prevents Psystar from shopping around for a more sympathetic judge.

    Even more simply—play time is over.

  10. @CYxodus: Hmm, where’s rattymouse? He usually posts within minutes claiming good news, except lately. I guess even he sees the writing on the wall or is his Psystar ripoff acting up again?

    Well, seeing as how Psystar is out of money, he’s probably not getting paid.

    Seriously, I have always seen the guy as a company shill. It’s the language he uses, always referring to Psystar’s “top notch” hardware. It’s just not the way people normally talk. He just tries to hard to pump up Psystar’s hardware for me to take him seriously.

    ——RM

  11. @LordRobin

    I’ve always suspected that he’s either a Psystar employee or a PC fanboy trying to irritate Mac users. The wording of his posts featured over the top language, ignoring of facts and outright lies. He would ignore any devastating comments made here, while single-mindedly pushing his mantra.

    What’s really interesting is that while rattymous openly called for the theft of Apple property (Mac OS), he/she resented anyone stealing his property (his/her user name). This little detail revealed a lot about rattymouse.

    My guess would be that rattymouse is a single white male, aged 20 – 24, slightly overweight and pudgy, who is a recluse, not very social and a Windows user. That he is a bit child like emotionally and feels threatened by the superior Mac OS, while secretly is envious of it. His temperament is melancholy and he has a self-destruct inclined personality.

  12. Psystar tried to use the bancruptcy system to get a minimum of six month delay in Apple’s suit against them while they continued to sell boxes. That got foiled. Now Psystar wants to drop the bancrptcy proceedings since it did not produce the effect they wanted.

    The judge involved has now stated they will not be allowed to re-file bancruptcy under any mode other than chapter 7 — liquidation. Psystar will not be allowed to use the bancruptcy system to avoid creditors or to restructure. They can file for liquidation, but that is all. In that case the investors in Psystar are last in line to get any money back. They would Ben way behi d Apple in any payout.

    Additionally, even if they file for liquidatio under bancruptcy they will NOT be allowed a delay in Apple’s suit agoinst them. This keeps them from filing, getting a hold put on Apple’s suit and then dragging out the ligudation over six months or more while they contiue to sell “clones” (i.e., “liquidate their inventory”). If they try to liquidate Apple will push for an expdited trial or judgement and there will be nothing Psystar can really do to stop it.

    Bottom line: Psystar is toast.

  13. Psystar spewed: “”They [Apple] will observe the building process from start to finish, including the installation of OS X on our machines. We believe the only thing they will discover is what we have been open about from the start, and of course the scorching Florida heat,” the company said on its blog.”

    Clearly the bozos at Psystar have heat stroke. This is the biggest joke of the year.

    So long Psystar. Once Apple records you installing Mac OS X on non-Apple hardware, you’re dead-in-the-water. Then add on top of that the ‘updates’ you have to personally create to maintain hardware compatibility, you’re buried 6 feet deep. Gotcha, sleazy liars.

    And then the trolls replied…

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