Psystar Stops Selling Mac Clones With Apple's OS

From PC World: Mac clone maker Psystar has agreed to pay Apple nearly $2.7 million in a partial settlement approved today by the federal judge who has overseen the 17-month case.

Psystar has also halted sales of Intel-based clones with Mac OS X preinstalled. Late Tuesday, its Web site showed all Mac clone models as "out of stock." The company's attorney confirmed that Psystar will no longer sell computers with Apple's operating system pre-loaded.

The Doral, Fla.-based company's dispute with Apple, however, is not over, nor apparently is its business of selling knock-offs able to run Apple's operating system.

"We will take the case up with the Ninth Circuit," said Psystar's chief attorney K.A.D. Camera of the Houston firm Camera & Sibley LLP. In an interview late Tuesday, Camera said Psystar will file an appeal with the U.S. Court of Appeals for the Ninth Circuit over a Nov. 13 summary judgment by federal Judge William Alsup, who said Psystar violated Apple's copyright as well as the Digital Millennium Copyright Act (DMCA) when it installed Apple's operating system on the clones it sells.

"We think that Judge Alsup got it wrong," said Camera. "The effect [of the settlement] is to allow the case to be heard by the Ninth Circuit," he continued, and characterized the settlement as "extremely favorable" to Psystar.

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