IoT
Infrastructure // PC & Servers
News
5/26/2009
03:46 PM
50%
50%

Psystar Carries On Cloning Despite Bankruptcy

Imitation Mac maker continues to take orders after Chapter 11 filing.

Faced with mounting legal fees and unpaid taxes, Psystar, the controversial startup that's challenging Apple's exclusive right to sell Mac OS-based computers, has filed for Chapter 11 bankruptcy protection. The company, however, appears to be continuing operations.

In papers filed in U.S. Bankruptcy Court for Southern Florida, Miami-based Psystar said it owes more than $250,000 to various creditors.

The largest creditors include Psystar founder Rudy Pedraza, who claims he loaned the company more than $120,000 of his own money, and law firm Carr & Farrell, which is owed about $88,500. Psystar retained the firm for its copyright battle with Apple.

Apple contends Psystar's Mac clones violate its copyrights over the Mac operating system. It sued Psystar in federal court in San Francisco last year. Pystar countersued Apple, alleging that Steve Jobs' control over the Mac OS violates consumer antitrust laws.

The judge hearing the copyright case recently granted Apple's request that Psystar produce detailed financial records. Apple believes Psystar, which maintains a slick, professionally produced e-commerce site despite modest facilities and a skeleton crew, has received funding from outside parties -- including, possibly, Apple's rivals in the PC market.

Psystar's bankruptcy petition, filed May 21, effectively puts the copyright case on hold, at least until the Chapter 11 proceedings are heard in Florida. In the bankruptcy case, court records show that Psystar has declared that no third parties hold a share in the company of 10% or more.

The records also indicate that Psystar is currently holding between $5,000 and $10,000 in customer deposits. The company has asked the bankruptcy court for permission to use the cash to fulfill the customers' orders.

Records show that Psystar also owes more than $11,000 in back taxes to the Internal Revenue Service and several thousands of dollars more to an assortment of business vendors, including Federal Express, UPS, and packaging manufacturer Timbar.

In addition to its Mac clones, Psystar sells Windows and Linux-based PCs. As of Tuesday afternoon, the company was still taking orders through its Web site, which does not mention the bankruptcy filing.


Learn about all the latest Enterprise 2.0 technologies at TechWeb's Enterprise 2.0 Conference, Boston, June 22-25. Join us (registration required).

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Server Market Splitsville
Server Market Splitsville
Just because the server market's in the doldrums doesn't mean innovation has ceased. Far from it -- server technology is enjoying the biggest renaissance since the dawn of x86 systems. But the primary driver is now service providers, not enterprises.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of July 17, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.