Update: Apple has sued Psystar in U.S. district court over copyright infringement.
Apple's complaint (view the Apple Complaint Against Psystar (PDF), filed against Psystar back on July 3, alleges copyright infringement, induced copyright infringement, breach of contract, trademark infringement, trade dress infringement and unfair competition and asks for a jury trial.
Also see: Confirmed: Apple files suit against Psystar
The 16-page document, filed in U.S. District Court in San Francisco, states that, in April of this year, Psystar began selling a computer called OpenMac (later renamed Open Computer), which apparently runs a "modified unauthorized version of the Leopard operating system." It further alleges that, in June, Psystar began selling rack-mount servers called the OpenServ 100 and Open Serv 2400 - products that again run Leopard.
At the heart of the complaint, though, is the allegation that Psystar's products are junk and are harming Apple because they are "advertised and promoted in a manner that falsely and unfairly implies an affiliation with Apple." The complaint notes that Apple has never authorized Psystar to install, use or sell the Mac OS software on any non-Apple-labeled hardware.
Online commentators have reported that Psystar's computer is "missing stuff like iLife, Bluetooth. an IR receiver, DVD burning and the ability to update your computer," is "LOUD, Crazy Loud," it "breaks the OS' automatic updates," and that "video was DOA right out of the box. No signal going to monitor Boot up is moot point as there is nothing to see." Of Psystar itself reviewers have written "they have no quality control," "lousy tech support," and "All I want to do is return the computer and get a refund." Likewise, it has been reported that Psystar has repeatedly changed location, this its office could not be found and that its first on-line payment processor terminated Psystar's account.
The complaint further states that "...Psystar's actions have been committed with intent to damage Apple and to confuse and deceive the public." The company says it "will suffer and is suffering irreparable harm from Psystar's infringement of the Apple trademark insofar as Apple's invaluable good will is being eroded by (Psystar's) continuing infringement."
As a direct and proximate result of Psystar's infringing conduct, Apple has suffered and will continue to suffer lost sales and profits in an amount not yet fully ascertained in an amount to be proven at trial. In addition, Apple has suffered and continues to suffer injury to its business reputation and goodwill for which no adequate remedy exists at law and for which Apple is entitled to injunctive relief.