Macs, clones, and license agreements
As you may know by now, a company known as Psystar has announced they're selling Mac "clones" for $549, complete with Leopard pre-installed. From a legal perspective, these machines clearly violate Apple's OS X 10.5 end user license agreement (EULA). If you're so inclined, you can find a full copy of all of Apple's EULAs on this page--the 10.5 EULA is a 2.1MB download. The relevant portion of the EULA is section two, part A:
This License allows you to install, use and run one (1) copy of the Apple Software on a single Apple-labeled computer at a time. You agree not to install, use or run the Apple Software on any non-Apple-labeled computer, or to enable others to do so.
Seems pretty black and white, doesn't it? Use OS X in this manner, and you're violating the EULA. So how can a company like Psystar hope to stay in business, given this legal transgression that's key to their business model? Wired offers up some legal opinions on how they may be able to survive--basically, violating an EULA isn't in nearly the same class of legal violation as is violating copyright or patent law. A breach of contract suit won't prevent Psystar from selling their clones, and probably wouldn't even serve as a financial deterrent: as one attorney notes in the Wired article, "the maximum damage Apple would be able to claim is the price of Leopard -- actually, the OEM (original equipment manufacturer) price of Leopard, which might be a few dollars." Another attorney comments that EULAs are problematic in court, as they've vague by nature. He says, "Companies make them as broad as possible but there's no way to basically enforce them. It's a scare tactic, a way to say, hey, we're reserving all these rights."
The Wired article is a good read, and notes that Apple's best defense may be in technology, not the courts--future system updates may render cloned systems unusable, which will certainly cut down on Psystar's ability to attract and retain customers. So that's what the experts think. From where I sit, over in the "just barely passed the required business law class" section of the room, here's my take on why I don't think it'd be wise of Apple to bring their EULA into the court system.
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