Psystar’s request for permission to use business checks denied by court

Thu, Jun 18, 2009

Legal, News

The ongoing saga between Apple and Psystar is turning into quite a soap opera, at least for Apple and legal geeks. The latest piece of news is that Psystar recently filed a motion with the court seeking permission to continue using business checks and deposit slips. That motion was denied.

According to Groklaw, the ability to continue using business checks while bankruptcy proceedings are underway is usually a formality typically bestowed upon parties without much of a hassle. That said, the court’s refusal to grant Psystar such leeway doesn’t bode well for the Florida based hackintosh maker.

Last week, Apple filed a motion seeking to resume litigation proceedings with Psystar after its bankruptcy filing put a temporary stay on the case. Apple asserts that Psystar’s bankruptcy filing is merely a ploy to delay litigation and give it more time to sell hackintosh machines unfettered. Groklaw interprets the courts recent refusal to allow Psystar to use business checks and deposit slips as an indication that Apple’s motion to life the stay will be granted.

If the hope was to continue the business under the umbrella of protection in Chapter 11, while Apple was left at the courthouse door gritting its teeth, blocked from any ability to stop Psystar due to the bankruptcy’s stay on litigation, which is Apple’s accusation I think that dream just died, no matter how the court rules on Apple’s motion to lift the stay. Clearly the judge has read that motion, and it will not be helping Psystar to keep a business in place that Apple has now told the court is infringing its rights. It’s telegraphing, I suspect, that Apple’s motion will be granted.

Interestingly, Psystar filed a similar motion, which was granted, seeking permission to continue using business forms. In that filing, Psystar lists a few reasons explaining why that motion should be granted.

12. The Debtor uses various business forms in connection with their businesses including, without limitation, invoices, order forms, stationery, check stock, deposit slips, brochures, packaging and flyers.

Oh really? That’s funny, because up to this point Psystar has been arguing, quite un-persuasively I might add, that because it’s a new company, it doesn’t keep records such as invoices, order forms, and deposit slips. Hmm…

And finally, and in what should come as no surprise to anyone following the case, Psystar, in its motion to continue using business checks, was required to list all of its bank related assets. After all, if you want to write a few checks, the court wants to know what funds you’ll be using to back them up. Shockingly, Psystar didn’t divulge any of the required info. Shockingly, its motion was denied.

At this point, Psystar is clearly in the “Tyson Zone”, a phrase coined by sportswriter Bill Simmons which refers to a status whereby any action involving a particular person is believable no matter how crazy or outlandish it may seem at first glance. If tomorrow Psystar filed suit against Apple for selling Mac OS software that infringed on its own “intellectual property”, would anyone really be surprised at this point?  Yup, Psystar is in the “Tyson Zone.”



4 Comments For This Post

  1. Aaron Says:

    Personally I want psystar to win, I really hate being tied to one company for my computer needs. And I know there are millions of people who feel the same way.

    Ether way Psystar will die after this because A) the legal fees and damages or B) the increased competitions from well known, name-brand computer manufacturers with better quality control.

  2. Anonymous Says:

    Not including Apple.

  3. MPR Says:

    Psystar will die, and rightfully so. Cap’N Crunch and Woz were not profiting from hacking AT&T tone dialling back in the day, they were having a bit of fun.

    Hackintosh won’t die though and it must scare Microsoft witless that at any time Apple could officially free the beast! As it is today, it’s perfectly possible to create your own Hackintosh if you have the time and inclination and a licensed copy of OS X lying around. Frankly, it’s easier to trade money for the convenience of the real deal IMO.

  4. MOB Says:

    Frankly, it is not easier to trade money for the real deal.

    It takes me about 45 minutes to build a hackintosh that is faster than the highest-end MacPro. It takes about 1 hour to install the OS and all of the drivers and updates.

    I had to read and experiment for about 20 hours in order to get the OS and drivers fully functional. I was already quite familiar with PC construction. All in all, I think that 20 hours is well worth it considering I saved just over $3,000 by building my own Hackintosh Pro.

    That kind of easily attainable savings, at normal retail prices for hardware, makes me wonder how disgusting Apple’s margin is. Things do not look promising for Pystar, but it would be best for the Apple fanboy if a competitor was deemed legal. You could still buy Apple, but maybe the price-gorging would stop.

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