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Psystar Launches First Sally in Mac Clone War

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Psystar Launches First Sally in Mac Clone War

Psystar, the wannabe Apple competitor, has delivered at least a handful of cheap computers that apparently do what the company promises: They run Mac OS X. Judging from early reports, though, the experience of using one is not quite akin to the heady pleasure of owning a real Mac. It's uncertain whether consumers will buy -- but it's pretty much a given that Apple will smite the upstart.


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Despite myriad indications to the contrary, Psystar does appear to be an actual company offering a real -- but perhaps not entirely legal -- product.

Psystar, of course, is the company that burst onto the national scene with news that it was offering a Mac clone, dubbed the "Open Computer," capable of running the Macintosh OS X Leopard operating system.

For Mac users used to paying a premium for the products -- upwards of US$2,000 per machine -- it seemed like a dream come true.

Dream or Nightmare?

Doubts quickly developed -- first over whether Psystar could legally offer such a product. Apple's (Nasdaq: AAPL) seemingly ironclad End User License Agreement states explicitly that its OS can be installed only on an Apple-labeled computer.

Questions over the legality of Psystar's undertaking quickly took a back seat to doubts about the company itself, though. News reports quoted mysterious employees with no last names. Reporters dug up confusing business registration information on Psystar, a Miami-based company. The Psystar Web site was on again, off again during the initial rush of news, and the company's order-taking and payment systems seemed less than reliable. It posted extended shipping times for the product.

Speculation grew that there was no actual product, and that Psystar's announcement was either an elaborate hoax or some sort of scam.

Drum Roll, Please

Now, though, at least a few machines have shipped and made their way into reviewers' hands, putting on the backburner -- at least for now -- suspicions that Psystar was not really selling computers.

Engadget received a product and published a review. The bottom line: The machine is noisy -- loud enough so that it's hard to talk on the phone when it's running, reviewer Nillay Patel wrote -- and there are several other drawbacks. But it can indeed run OS X.

Enter the Lawyers

There's no chance that Apple is going to let this slide. The company guards its intellectual property and trademarks like a mother bear defending her cubs -- Apple has even gone after firms that have incorporated the word "pod" into their product lines, claiming trademark infringement.

"Nobody jerks [Steve] Jobs around with jacked Macs," Raymond Van Dyke, a tech attorney with Winston & Strawn, told MacNewsWorld. "Apple is very protective of their high-end operating systems and their code -- and for good reason. No Hackintoshes allowed."

He is doubtful that Psystar will prevail with the argument that Apple's EULA is a violation of antitrust laws.

"Since Apple does not have a large market share of the personal computer space, it would be difficult for Psystar to allege antitrust violations, which require market dominance. Also, Apple is entitled to protect their operating system from copying."

In short, Apple could easily allege violation of numerous rights it holds in its technology -- whether patent, copyright, trade secret or other rights.

"Unless Psystar has a license to use and sell Apple's OS, they are in danger of litigation, injunction and more in the Mac Clone Wars," Van Dyke concluded.

Lower Line

Although Apple should have little difficulty crushing Psystar, the image of a US$399.99 Mac will be harder to dispel from Mac enthusiasts' imaginations.

Most of the other PC makers have stripped-down products targeting the low end of the market. Apple has the Mac mini, but it has made few inroads into the market. Furthermore, its low retail Increase Customer Sales with Email Marketing -- Free Trial from VerticalResponse price is a bit misleading -- it comes without a monitor or keyboard.

"Apple's Macs are becoming more popular -- not just with consumers but also in the enterprise," Greg Sterling, principal of Sterling Research, told MacNewsWorld. "I think for all these reasons, Apple is going to have to cultivate its down-market product line."


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