Judge Criticises Psystar, Dismisses Case Against Apple

A federal judge has dismissed charges from Psystar that Apple  is a monopolist because it tightly controls which computer makers build machines using its Mac OS X software. Psystar has been selling so called ‘Open Computers’ using Apple’s operating system for several months now - in violation of Apple’s licence.

When Apple filed a lawsuit against Psystar in July alleging copyright infringement, inducement of copyright infringement, and trademark infringement, among other legal claims, Psystar responded with a counter-lawsuit.

Psystar was challenging Apple’s requirement that only Apple-branded devices use its software, which Psystar contends illegally ties the sale of one product to another. That’s not the case with operating system software from Microsoft or the open source Linux, which can be installed on devices from any number of manufacturers, Psystar said.

With his ruling, U.S. District Judge William Alsup has handed Apple a strong victory against Mac cloners that create and sell machines based on Apple’s software. In his 19-page decision, Judge Alsup ruled that Apple’s products don’t constitute a market to dominate. As a consequence, Apple then can’t be considered a monopolist.

“Indeed, Psystar’s allegations are internally contradictory. Psystar alleges that Mac OS is, by definition, an independent and unique market. That is, Mac OS, by definition, admits no reasonable substitutes,” Judge Alsup wrote in his ruling. “Psystar further avers, however, that Apple engages in the alleged anti-competitive conduct “in order to protect its valuable monopoly in the Mac OS market and, by extension, Apple-Labeled Computer Hardware Systems from potential competitive threats,” and that Apple’s “unreasonable restraints on trade allow Apple to maintain its monopoly position with respect to the Mac OS and Apple-Labeled Computer Hardware Systems submarket.”

Apple’s July lawsuit against Psystar seeks to effectively shut the company down for allegedly violating the terms of use of its software. That suit remains ongoing. An Apple spokesman had no comment. A representative for Psystar couldn’t be reached for comment. Psystar has 20 days to amend the complaint and argue its case before the judge.