• Psystar Files for Bankruptcy, Trying to Slow Down Lawsuit with Apple

    The Apple and Psystar lawsuit seems to have taken an ugly turn. Psystar, the "Mac clone" maker, has filed for chapter 11 bankruptcy protection in Florida last Thursday. This is reported to be a move to slow down its lawsuit with Apple, based on the violation of Millennium Copyright Act. Apple's legal firm was made aware of the move on Memorial Day. This filing by Psystar is a clear indication that those supporting them against Apple seem to have withdrawn support, and Psystar neither has the power nor the money to fight Apple anymore.

    While Apple claims that the PC maker has no rights to sell PCs installed with Mac OSX, Psystar has not ceased retail operations.

    The Florida court will be holding a hearing on June 5, which is likely to reveal the name of the mysterious investors who have been working in the background till now.

    This smart move by the Psystar will put the lawsuit filed by Apple on hold while the Bankruptcy Court proceeds with the filing. Maybe it will give them some time to gather some investors and resume fighting Apple when the hold is lifted in the next few months.

    Still, it might be the case that even when this stay is lifted, Psystar won't be in a position to resume it's fight with Apple against selling of Mac clones. It's clear enough that Psystar is on the verge of defeat - but there might be some hope for the PC maker.

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