Psystar the Martyr: Deconstructing ITWorld's call for Apple to license OS X

Well written piece. Reisinger is extremely short-sighted to believe that all Mac users buy Macs simply for design. I won't lie, it's a factor, but it's definitely not the only factor that helped make the choice for me. From the article, it seems to me that he simply hasn't bothered to use a Mac for any extended period of time.

Very nice piece! A very will written article.

Yeah, I read that so-called IT World article this morning and almost spit out my coffee. Such unbelievable BS. The guy is beyond clueless.

People don't buy Macs for the design, they get interested because of the design and then they buy them (and continue to buy them most of the time) because it's not freakin' Windows. OS X, not Jonathan Ive, is Apple's competitive advantage. I certainly like the looks of my PowerBook and it's MacBook Pro offspring, but I bought it (back when the sticker price was literally $3,000) because it wasn't a Windows box.

I don't hear anyone claiming that Coke should license it's formula, or that people would still buy KFC if everyone knew the 11 herbs and spices. Because it wouldn't work like that.

"But it worked for Microsoft, and they're worth like a bajillion dollars!" Yes, it did work for Microsoft, 20 odd years ago. Now that Microsoft is, you know, Micro$oft, the game is a little different. Simply put, there's no money in it now, or at least, not enough money to interest Apple's shareholders.

I don't buy the argument that installing Mac OS X on a non-Mac is "theft".

Theft occurs when you deprive a rightful owner of property. Barring the argument that you're not really stealing when you copy software, I'm hesitant to even consider what Psystar is doing as "theft" even in that sense. To my knowledge, Psystar isn't pirating OS X; they're merely breaching contract by installing OS X on non-Apple machines.

But why shouldn't they be allowed to do that? In a general sense, if I buy something from a company, I should be able to use it how I please. In my opinion, this includes software. I don't like this idea that I fork over $130 to a company, and they get to tell me how I can and can't use their product. If I legitimately buy OS X, I should be able to install it on whatever machine I please. I bought it legitimately, and Apple shouldn't dictate how I can and cannot use it.

Furthermore, if a tightly integrated model of OS and hardware, such as the one used by Apple, really is superior, then Apple should have nothing to fear. Truth be told, I do think Apple's right -- I think a computing system runs a lot better when the operating system is tightly coupled with the hardware, and I'm willing to pay top-dollar for that experience. I also agree with your point that Mac users don't buy Macs for the design -- they buy it for the experience, which is a direct consequence of the fact that the OS is tied so closely to the hardware.

But I still believe that if I legally purchase OS X -- if I compensate Apple justly for their development efforts -- I should be allowed to do with software whatever I please.

Note that I'm not saying that Apple should license OS X to other PC manufacturers. I'm not even saying Apple needs to make an attempt to allow OS X to run nicely on non-Apple hardware. I think Apple's model is fine and even fair. But if I purchase OS X and use my own cleverness to get it to run on commodity PC hardware, I should be allowed to do so. Apple doesn't and shouldn't have to support such endeavors, but they shouldn't prohibit them, either.

So basically, I don't think Psystar is doing anything wrong, as long as they legally purchased copies of OS X (which I think they did). They've already compensated Apple, so it's hardly theft. I also don't think they'll be very successful, since, as stated, Mac users buy Macs for the software-hardware experience, which Psystar obviously lacks. I just think that you're going too far in labeling Psystar as thieves, and touting Apple's draconian control over its products as legitimate.

The guys at IT World must have gotten dates a little confused and thought this was still April 1st and this was the April Fool joke. I really cannot believe that they did not tag this as satire. How do they really expect anyone to take this whole joke seriously ? After all the address changes, not being able to get a credit company, an unhappy developer and two guys that own 7 totally different companies and looking thru the catalog no reference lists ? Yeah right guys... Come to Miami and you can buy anything you want.

Great article Kyle.

Psystar is a company that is building computers from off the shelf parts and profiting by re-selling a product -- OS X -- that they agreed not to install on non-Macs, and have no right to sell.

Why does everyone keep insisting that when you buy a product off a shelf you are agreeing to something? You hand the teenie bopper cash they hand you a receipt and a box.

I suppose, many of the EULA's more violent detractors are also those who roundly object to the terms of renting tools, or movies, leasing apartments or condos, or using a subscription service for music. The licensing model using a EULA, while troubling to those who think they are purchasing a "hard property" is an effective business process that allows a reasonable control of use. In Apple's case a very loose and usually lightly-enforced control. In fact has anyone heard any response from Apple's Legal Dept to this challenge? Nope. Then why the furor?

From Apple's perspective, and any business which depends on image, license, or other profit controls, it is simple. If you do not defend your licensing program in some manner, the courts will throw it out and you will see an impact to your business. In Apple's case, it could potentially impact their hardware sales, which is a significant part of their revenue stream. It has been argued that only a certain class of user will actually do this, and so the impact will be minimal. Without a definitive example of that being the case, that argument is not defensible.

But let's look at Psystar. Within the relaxed and essentially unregulated business environment in Florida, situations like this are rife. You have two gentlemen who are "entrepreneurs" who have created a number of "shadow" businesses according to the state of Florida government offices. They have advertised themselves actually as consultants for small business, providing technology solutions of various stripes - a model that is very common. Now, if the information off of various blogs is accurate, the box they are representing is built from off the shelf commodity parts, from a common consumer supplier, and essentially wide open for any OS install. To generate some interest they look around and discover, "hey! If we say we are going to make this a "hacintosh" we can pull some major hits to our site and maybe pull in some business for our box builds." Now a couple of flies in the ointment - Openx86, and Apple. Openx86 never intended their stuff to be used for commercial profit center sales - and have stated as such in response to what Psystar announced. Psystar didn't check first before using their stuff, and now has to justify, negotiate or stop doing it.

Of course we all know about the Apple EULA, so no need to flog the mortified equine about that. So what actually happened here. A slew of pundits and commenters (yours truly included) are completed pwned by Psystar because we are doing exactly as they really wanted us to - generating a whole lot of awareness about them, perhaps causing sales by the unsuspecting, to a couple of individuals whose motives and business model are potentially highly suspect.

One thing that I find interesting about Psystar's stunt here is that, unless I've missed something, there has been no formal warning or violation notice delivered to Psystar by Apple or its representatives. My hunch is that perhaps Apple is just waiting for Psystar to actually deliver a box to the market. On the other hand, this might be a great opportunity for Apple to let the world see the huge benefit of buying a Mac. For example, Psystar's box gets loaded with Mac OS X 10.5.2, someone actually buys one, (we know there are plenty of people out there stupid enough to actually pull the trigger), takes delivery and gets all set up. Let's further assume that OS X 10.5.2 runs fairly well on the Psystar box. Fast forward a few weeks when Apple releases OS X 10.5.3. The poor sucker who made the purchase, seemingly happy and content (and probably very naive) clicks the "Install" button after the Software Update runs, clicks the restart button, and boom, suddenly has a box worth about as much as a brand new Dell upon restart because the box can't run 10.5.3. No guarantee that would happen but at one point Psystar had some fine print on their site, wherever it may be floating in the cloud at present that specifically indicated that people who purchase their product must wait for them to approve Updates.

But let's further assume that this bargain hunter abides by Psystar's request and disables software update completely. Who does he call for support when there is trouble? Apple? I think not. Psystar? Maybe, if its a hardware issue. But wait, what if its a software issue? Really, who will support that? An ACN member maybe (Apple Consultants Network)?

I personally would like to see Apple let these guys flounder in the bed of feces that they currently lie in. I suspect that just letting these guys do their thing would likely improve Apple's market position far more than it would hurt it. And hey, worst case, if Apple's market share is impacted they can just throw some of their $15 to $20 billion in cash to their legal team and pursue legal action against every business entity and individual that is violating their EULA. Which raises another question I have. If someone actually buys a Psystar machine aren't they then in violation of Apple EULA? Or is it just Psystar? I'm not a legal expert but I acted as one in a school play once. (I was actually already dead when I made the appearance in the play, it was more or less for effect... and the fact that everyone knew I couldn't act so I was a natural fit for the roll.) Feel free to laugh at that mostly completely unrelated remark.

In the final analysis what is the marketshare of the consumer who would buy one of these boxes. In other words how many warm bodies are going to purchase this as compared to the current purchasing population of Macs in general.

Probably statistically and fiscally insignificant. Apple targets the average user upwards to the premium user for their marketing and user population analysis. This is the reality cast against the wishful thinking and prognosticating of both uninformed pundit and the micropopulation of modders, and home builders for whom this is really targeted. Even the low-end users that Psystar could allegedly market it to will need a compelling reason to purchase this over a PC anyway, and the product doesn't bring that to the table. Even the (unlikely) thousands Kyle referenced above are still a far cry from statistical significance in term of sales against the increasing installed base of Apple computers, of over 22 million and increasing. The problems and issues that tcervo called out in his seed from MacWorld's build of a Frankenmac are very much show-stoppers for the average low-end user, and annoying to the average modder/builder. In other words, not worth the effort.

In the same way, Apple probably looked at the effective valuation and approach of Psystar, and decided that they didn't have to swing a +$million dollar legal team into action because the issue wasn't worth pursuing.

The funniest line I heard about this Psystar circus was on TWiT last week. Goading Apple into a lawsuit is "like throwing a water balloon at Hitler".

Psystar looks like they did find a credit card processor. But, I would be extremely reluctant to order one of these things since their checkout page was still not encrypted as of this morning. How could any site not provide that sort of protection for its customers?

I like the Check out system when it add's up the bill also......

Operating System: OS X 10.5 Leopard (+ $155.00)
Total:$554.99

However in the Catalog:

but we also preinstall Leopard for free so you can begin to use your computer right out of the box.
Price per Unit (piece): $399.99

Must be that Drug money math I don't understand real well....

BTW when you do hit the final checkout button it does go to a https site. I still would never order one...