Apple Petitions Court for Leave to Amend Its Complaint Against Psystar [Updated]
- December 1st, 2008 - 6.53 pm UTC
- Apple Legal News, Default, Psystar
- dizzle
In a very interesting turn of events, on November 26, 2008, Apple filed a Notice of Motion and Motion for Leave to File Amended Complaint stating in part:
“Through this motion, Apple seeks leave to file its Amended Complaint … attached hereto as Exhibit A, adds a Digital Millennium Copyright Act claim, additional factual allegations related to Apple’s previously asserted claims and Doe defendants. The DMCA claim is based on new information that Apple has learned since the filing of its original complaint. Apple’s Amended Complaint is timely, does not cause any prejudice to Psystar and should be permitted.”
So what does this possibly mean? It could be confirmation of my long-standing theory that the Psystar principals are merely patsies for some larger interests who wish to be spared the publicity of going against Apple but would benefit from a victory in this case. Under my theory those interests would be the as-yet unidentified “Does 1–10″ that Apple wishes to add as co-defendants. The plot thickens indeed.
It is likely that the Court will grant this motion. The parties themselves had already previously agreed to a date of January 19, 2008 to amend the pleadings. Psystar has indicated to Apple’s counsel that it opposes this filing.
I note that the proposed Amended Complaint is six pages longer than the initial Complaint. I have verified that this addition is not comprised by exhibits but rather the Complaint itself.
Doe Defendants 1–10
The Amended Complaint reveals tantalizingly little about these unidentified parties. Here is the extent of the information pled:
18. On information and belief, persons other than Psystar are involved in Psystar’s unlawful and improper activites described in this Amended Complaint. The true names or capacities, whether individual, corporate, or otherwise, of these persons are unknown to Apple. Consequently they are referred to herein as John Does 1 through 10 (collectively the “John Doe Defendants”). On information and belief, the John Doe Defendants are various individuals and/or corporations who have infringed Apple’s intellectual property rights, breached or induced the breach of Apple’s license agreements and violated state and common law unfair competition laws. Apple will seek leave to amend this complaint to show the unknown John Doe Defendants’ true name and capacities when they are ascertained.
If I am right, some backers of Psystar are sweating right now, and if they are paying the bills, I would not be surprised to see some push for a nominal settlement. For another take on the possible identity of these “Doe” defendants please see: Has Psystar Ruined the Hackintosh for Everyone?
Additional Allegations in Amended Complaint
Paragraph 12 is expanded to include Psystar’s OpenPro, and Psystar’s practice of offering Leopard updates at its site that are either exact copies or modified versions of Apple’s copyrighted software. From this point on, the paragraph numbers do not match as Apple has added two additional paragraphs prior to the paragraph previously numbered as 14 and later moves around and adds other paragraphs. These first additional paragraphs mention Psystar’s plans to release additional computers using unauthorized copies of Leopard, including laptops, as well as Psystar’s practice of distributing a restore disk and providing support for customers to install Mac OS X software in an unauthorized manner.
In its General Allegations, Apple quotes more extensively from the EULA including the Transfer and Termination provisions. In the First Claim for Relief, allegations of additional copyright infringement, including unauthorized derivative works, are added. The Third Claim for Relief points out that Apple had taken measures to protect their copyright, and the defendant has illegally circumvented these measures. The Fourth Claim for Relief sets forth with more specificity Psystar’s alleged infringements. The Fifth Claim for Relief includes a new allegation that Psystar has admitted it was aware of the existence of the EULA. The Seventh Claim for Relief contains additional information on Psystar’s alleged harm to Apple’s trade dress and reputation. In the Eighth Claim for Relief, as in earlier claims not here noted, Apple makes a specific allegation that Apple’s Trade Dress is non-functional. The import of that allegation is beyond my ken. An Eleventh Claim for Relief was added alleging violations of Common Law Unfair Competition.
Many of the allegations contain strengthened wording of “intentional, willful and in conscious disregard of Apple’s rights.”
Apple’s Prayer for Relief contains a request for a preliminary injunction which was noticeably absent from the first Complaint which only sought a permanent injunction. It is my opinion that the Court may very well grant a preliminary injunction until the case is resolved. Apple can easily argue that Psystar’s business does not solely rely upon its disputed sales of non-Apple hardware loaded with OS X as Psystar also sells computers loaded with Windows and Linux.
The above listing of changes is not intended to be all-encompassing. It is the product of my first review of the documents for the most important highlights. As I have time to examine the filings more closely, I will provide additional information. I remind the reader that my opinions are lay-opinions as I am not an attorney, and if authoritative opinions are desired, a competent licensed attorney should be consulted.
Copies of the filings can be downloaded below:
Update: I added a link to an article with a differing theory on the potential identity of the as-yet unnamed defendants and made minor grammatical changes.
Comments
Milind Alvares 1st December 2008, 20.46 pm
I can hardly make sense of this whole thing. In a nutshell, can you explain who gains a point in this situation?
Aayush Arya 1st December 2008, 21.07 pm
LOL! Same here.
SJC 1st December 2008, 21.49 pm
Considering that there are large numbers of people working on the ‘Hackintosh’/OSx86 projects quite openly across the internet, could Psystar use the fact that Apple hasn’t prosecuted them in its defence? After all, Psystar is basically selling their hacked version of OS X. (I doubt they’re capable of doing any of the hacking themselves.)
Is the DMCA like I’ve heard regular copyright is, where you have to chase every infraction, no matter whether its coincidental, not for profit, etc., less when you go to prosecute a serious case the fact you’ve let these other slide is used against you?
dizzle 1st December 2008, 22.20 pm
In a nutshell, Apple is desiring to add yet another claim against Psystar: Violation of the Digital Millennium Copyright Act. It alleges this as Apple has taken pains to protect its intellectual property and that Psystar had to hack a system to make OS X run on non-Apple labeled hardware. More interestingly Apple is moving to add additional, as yet unknown, defendants who they are claiming are part of Psystar’s business model in some way. My theory has been for nearly a year that Psystar is backed by some large names and/or deep pockets that do not want the negative publicity of a possible loss, but would benefit greatly from a possible win. Now, Max Hertz from AppleEclectic has a very interesting take on these “John Doe” defendants – perhaps it is the OSx86 community. Please go read his article as well for his take:
Has Psystar Ruined the Hackintosh for Everyone?
I do not think it is the OSx86 community but must confess that never even crossed my mind. That particular community has been particularly outspoken against Psystar (link forthcoming), and Apple has been content to let them fly under the radar so far. I do think though that Max’ take is a solid alternative point of view. Did that help? Legal issues are complex. If they are distilled too much several undesirable things happen.
1. You don’t really learn anything
2. It encourages irresponsible reporting by some sites that just parrot what they read from another, and it turns into a game of telephone, where the facts and reality are far apart. Understanding the complexities of this case does take some work, but it is worth it. I try to distill it down enough for the lay person without diluting the importance. Please feel free to ask me any questions.
anonymous 2nd December 2008, 06.20 am
“That particular community has been particularly outspoken against Psystar (link forthcoming).”
That’s true, it seems that Psystar is using a whole lot of code (the EFI emulator, the NVInject graphics patch) from developers working on the OSx86 Project. For the OSx86 community, this is a labour of love. Psystar is using other people’s work, without their permission, and to make money. Not like this comes as a surprise.
engadget: “We also talked to several other members of the OSx86 scene who believe that Apple is tolerant of (and even subtly assisting) their efforts, and are worried that the Psystar flap might end that relationship and bring the hammer down — after all, there’s no Psystar without OSx86.”
http://www.engadget.com/2008/04/16/osx86-project-not-too-happy-with-psystar-either/
dizzle 2nd December 2008, 12.26 pm
Thank you, that is precisely the link I was looking for. Psystar has no friends in the OSx86 community who are not doing this for profit. I seriously doubt that the John Doe defendants requested to be added have anything to do with them.
I do think however, that the licensing under which OSx86 operates needs some tweaking. I believe that was brought up in the interviews linked to in that engadget article.
dizzle 2nd December 2008, 14.51 pm
Actually I have good reason to believe that they are doing at least some of the hacking themselves and/or created new hacks.
I do not know for sure, but my gut says no. There were already standard copyright claims, this DMCA is not adding much new that I can see, but I could be wrong on further examination. IMHO nearly every site is concentrating on that and not enough on the John Does 1-10. Are those OSx86 people? I don’t think so, but as we spoke, there is a paper trail I want to follow a bit further. Right now, I still think the best theory is un-named backers/owners who wish to remain un-named. IF I am right, and IF Psystar fails again in its countersuit, Apple may have no motivation to settle for any amount worth speaking of but just simple go away money. Certainly not millions. I really think the Gotcha is the John Does.
dizzle 2nd December 2008, 17.21 pm
Just for the lay reader’s reference here is the Wikipedia entry on the Digital Millennium Copyright Act. For those looking to review the actual legislation here is the actual Act itself.
I am probably going to leave it to others to chase down that fox; I am really intriqued by the mysterious “John Doe” do-defendants.
To answer SCF’s question, that preliminary review of the material doesn’t seem to indicate that Apple would be required to go after the OSx86 group, though a complete answer on that would of course require a professional legal opinion. As a lay person, I think it is obvious that there are enough differences to make the circumstances distinguable: one group is trying to make a profit on the back of Apple and the other is a group of geeks who like to tinker around to see what they can do. Huge difference IMHO.
dizzle 3rd December 2008, 13.05 pm
The more I am reading, the more I see that nearly everyone is picking up on the DMCA angle making me think that perhaps I am mistaken, and that is where the true angle is. I know that is where the “Apple is going to be unpopular” angle is, and Psystar are martyrs angle is going to be (ignoring the fact that they are IMHO alone thieving punks – not necessarily legally but by my moral standards they are), but is that really the focus?
Interesting. I am going to spend some time re-evaluating this. I think we may know more when the Judge rules on the Motion. Remember there is no DMCA angle yet. The Judge has to allow the amendment, and he is not required to do that. If he feels that Apple should have included that to begin with, and they are not asking for an exception due to excusable neglect or inadvertance (which why are not), he likely will not grant it. Complaints aren’t things in which parties can just willy-nilly decide to go “oops,” I think I might want to add that. Something has to have changed to make Apple want to add that now rather than at the beginning.
It wouldn’t be the first time I am wrong in a guess (and let’s face it, only the two parties know their strategy, we are all just guessing), but I just think it is more to it. Going back through all the stuff so far, the outline of a potential idea is bubbling up through this warped brain of mine.
Adrian 28th January 2009, 00.47 am
I say Kudos to the Psystar guys! Im glad that they are willing to go out on the limb for the sake of opening mac os x to a wider variety of hardware. As much as I love Apple hardware I feel the options that they give folks are INCREDIBLY limiting to Power Users. The ability to make my own custom machine for graphics/video editing with my own custom PCI cards, graphics cards, etc.. is phenomenal. I DO NOT WANT to use Windows for these applications. If Apple is going to limit their customer base to only people who will buy their hardware I think they need to feel how they are missing out. Not everyone can afford a $3000 Mac Pro tower that could be built for $1000 with perfectly compatible hardware. I think Apple prohibiting their “would-be” customers from using their own hardware is their own down-fall. Plus, from what I have understand of the GNU license, grub boot-loaders etc.. this stuff is completely fine to resale. You just cannot limit another persons ability to resell it as well. Buy your self a psystar, dissect it, then start custom building and selling your own machines. If everyone in the osx86 community just started doing what psystar is doing apple would spend so much money on lawyers they might realize they ought to just relicense their OS and capitalize the way Micro$oft always has. We all know Steve Jobs is a brilliant designer and harbinger of incredible concepts, BUT he ought to go to take some lessons from Bill Gates on how to capitalize. Can you imagine!! I know dozens and dozens of people who would just buy a copy! We are not ALL pirates who want to use this OS as our primary OS.
pdair 6th November 2009, 22.37 pm
Thanks for this good post but I think you need to improve your english
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