A Miami-based vendor has ported Apple's Leopard operating system to generic PC hardware to offer a cut-rate Macintosh clone for less than one-fifth of what Apple charges for a similar system.

The system, which Psystar calls OpenMac, represents a direct violation of Apple's licensing terms, which forbid third-party installations of Leopard. But a Psystar official said Monday that the company believes Apple's terms violate U.S. monopoly laws.

OpenMac features Leopard pre-installed atop a 2.2-GHz Intel Core Duo processor with an integrated Intel 950 graphics chip, 2 GB of DDR system memory, and a 250-GB storage drive. It also offers four USB ports and a 20x DVD+/-R drive.

Depending on options, OpenMac sells for about $399, or $1,700 less than a comparable, Apple-branded Mac. A Psystar official on Monday confirmed to InformationWeek in a telephone interview that the systems are currently for sale.

Apple has long taken heat from some computer users for its high-prices and unwillingness to license its operating system to low-cost, third-party hardware manufacturers -- as Microsoft does with the Windows OS.

In fact, the Leopard end-user license agreement (EULA) expressly forbids installation of the OS on third-party hardware, either for re-sale or for individual use. As a result, it's questionable whether Psystar can legally sell the OpenMac. It's also questionable whether buyers could legally use such a machine.

Psystar officials, however, are undaunted. They claim that Apple's EULA should not be legally enforceable because it creates an unfair monopoly for the company. "This may be up to the courts to decide," said an employee who answered the phone Monday at Psystar's Miami office.

The employee, who would only identify himself by the name Robert, said Apple overcharges for the hardware on which its operating systems, including Leopard, come pre-installed. "They're charging an 80% markup on hardware," said Robert.

He also said Psystar believes Apple's prohibition against third-party installations might not hold up in court. "What if Honda said that, after you buy their car, you could only drive it on the roads they said you could?" said Robert

The legal questions do not appear to be stopping Mac fans from attempting to check out the clone. Psystar's Web site appeared to have crashed as of Monday afternoon following news coverage of its OpenMac product.