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Psystar had a simple idea. It wanted to build a low-cost machine that would run Apple’s Mac OS X operating system. Apple had a simple response: Lawsuit. Now, Psystar is striking back. It will not only answer Apple’s lawsuit, it will meet the computer giant with a countersuit of its own, reports CNET.

Psystar’s suit will be based on two federal laws, the Sherman Antitrust Act and the Clayton Antitrust Act. Both of these are discourage the formation of monopolies and cartels. Psystar will try to say that by restricting OS X to only Apple-made boxes, Apple is restricting the market and can set its own high prices.

Though Apple briefly opened up its OS to run on third party-made machines in the mid-1990s, when founder Steve Jobs came back to the company, he quickly killed those deals. Because the OS only runs on Apple-made machines, Apple is able to tightly control user experience, which some (including yours truly) feel has let to a better overall experience when compared to the wide range of machines that run Microsoft’s Windows operating systems.

If Apple allowed OS X to run on less expensive machines, you’d likely see a rise in complaints about system lags, crashes and all the other fun stuff that is sometimes a result of inferior hardware. In fact, if Microsoft could restrict its much maligned latest OS, Windows Vista to run only on machines it made, I’d bet we’d see a huge decrease in the number of complaints about it.

Psystar’s countersuit will boil down to the classic debate of open versus controlled systems. Both, of course, have pluses and minuses.

Without being a antitrust legal expert, it would seem to me that if Apple had a larger market share, Psystar would have more grounds in its argument. However, by controlling less than ten percent of the operating system market, Apple can mostly fly under the radar. Though, its share has been steadily growing.

Psytar had been attempting to sell systems running OS X for around $500. Apple has a system in that price range, the Mac Mini, but it lacks many bells and whistles associated with modern desktop computers (namely a monitor and any type of input device).

[photo: flickr/Daquella manera]

Apple doesn’t allow other manufacturers to build machines that run its OS X operating system software. So when Psystar came out and said it was creating a system that would do just that, you knew it was only a matter of time before the lawsuits started flying. And here they are.

Apple has filed a suit against the Florida-based company today at the federal district court for the northern district of California, according to ZDNet. As one might expect, the suit will be for licensing, trademark and copyright infringement.

Pystar had been attempting to sell computers running OS X Leopard (Apple’s newest operating system) for around $500. Compare this to Apple’s current cheapest computer, the Mac Mini, which comes in at $599 but is significantly less powerful. Apple’s “real” desktop computers start around $1,000.

Apple has long had a closed operating system when compared to a company like Microsoft, which allows its operating system to run on a wide variety of computers (Microsoft, of course, doesn’t make its own computers). Apple briefly adopted a strategy of opening its OS to other manufacturer in the mid 1990s, but as soon as founder Steve Jobs returned to the company (he had been forced out several years prior), he killed those deals.

Interestingly enough, Psystar’s web site appears to be down at the moment.

Former Broadcom executive Henry Samueli to plead guilty in backdating case — The Broadcom flameout saga continues, with former chief technology officer Samueli admitting that he previously lied to SEC investigators about whether or not he had illegally back-dated stock options.  Among Broadcom’s two founding Henrys, Samueli was the good cop. That’s why it was surprising that Samueli pleaded guilty to avoid jail time. But the other Henry, former CEO Henry Nicholas, is up for a raft of criminal charges from drug dealing to using prostitutes. [Samueli photo via Forbes.]

Game association trumpets games in the workplace — It’s no surprise that the Entertainment Software Association, the industry cheerleader for companies that publish video and computer games, would produce a positive report about games in the workplace. The ESA-sponsored study, carried out by KRC Research, shows that 75 percent of U.S. organizations that use video game-based training are getting positive results, and looking to expand their usage of games. Meanwhile, more than 75 percent of those without work-focused video games plan to introduce them in the next five years. If we didn’t enjoy any excuse to play games, we’d probably be a little more skeptical. Instead, we think this survey sounds about right.

More than one billion PCs now being used in the world — Research firm Gartner guesses that number and projects it to double by 2014.

Sony has lost $3 billion plus on the PlayStation 3 so far — “Even if the platform is ultimately successful,” an annual Sony company report says, “it may take longer than expected to recoup the investment, resulting in a negative impact on Sony’s profitability.”

LinkedIn may be coming to China — More here.

Review: Psystar’s unauthorized Mac clone is just like a real Mac — Psystar provoked excitement among many bloggers, at least, in April, as it promised to deliver a Macintosh operating system in a machine that it sells for far cheaper than the products that inspired it — in possible violation of Apple’s terms of service. No legal challenge has come from Apple, though. Now, Tom Krazit at CNET has a review of it here, after having used it for a month. He says it’s like using a Mac. [Photo via CNET.]

Five previously-undisclosed features due for Mac’s latest operating system, “Snow Leopard” — According to a scoop published by blog Apple Insider, the new features include a new multi-touch framework, smaller-sized applications, more advanced word processing features, auto activation of fonts, and support for the ZSF file system. Snow Leopard is due next spring. Also, we’ll see how fast Psystar implements it once it’s out.

Old iPhones worth as much as new ones on eBay — Blogger Jason Kottke breaks down observed sale prices on the auction site. And I quote:

- A lot of five never-opened unlocked 16Gb iPhones went for $2,755 ($551 per phone)
- A used unlocked 8Gb iPhone went for $405
- A used unlocked 16Gb iPhone went for $585.

Sun has a massive 256-thread Niagra processor coming in 2009 — The details here.

New York Times: Google News is not growing very fast – This article talks about issues at Google’s automated news aggregator. Although it’s not disclosed in the article, I suppose the New York Times would prefer its readers to use its own automated news aggregator, Blogrunner.

Here’s the latest action:

Six Apart evolves into an ad network — The blogging company behind MovableType, TypePad and Vox is offering a new advertising program which will give publishers more control over ads and revenue from their sites. The company claims its ad network will be better than the many others out there (with more popping up everyday) because it has the best experience with advertisements specific to blogs. The company also launched Six Apart Services after acquiring Apperceptive, a New York-based company that has helped build communities for large sites such as The Washington Post, The Huffington Post and Boing Boing. Six Apart vice president, Anil Dash has more.

Microsoft acquires Xobni, maybe — The email startup, which Bill Gates has called “the next generation of social networking,” has supposedly signed a letter of intent to be purchased by the software giant, sources tell TechCrunch, apparently for $20 million. But not so fast,  we reached co-founder Matt Brezina on his cell, who said it was too early to comment. He said the company remains focused on rolling out product for general release. He did seem remarkably relaxed, suggesting the deal may not yet be in final stages, but it was hard to tell. He was sauntering on the Penn State campus, about to start a lecture to students, providing tips about entrepreneurship. Now we’re seeing other sources say no letter has been signed and that the company plans to remain independent until it gets its product out. Our guess is that Microsoft has offered, but that no deal has been signed yet. Xobni works as a plug-in for Microsoft Outlook and allows users to easily view past related conversations and search quickly through mail — which sounds a lot like Google’s Gmail.

Sequoia adds another partner to start broader investment initiatve — The WSJ’s Rebecca Buckman follows up on rumors that Sequoia is seeking to broaden its activities, confirming the hiring of Eric Upin and Keith Johnson, both of the Stanford Management Company. They’re creating an investment fund that would “invest in multiple asset classes, instead of just venture capital… The new vehicle — if it gets off the ground — likely would mimic the investment style of university endowments and other private funds that put money into stocks and bonds but also ‘alternative investments,’ such as buyout funds, venture capital and natural-resources investments.”

23andMe admits personal genetics have no medical purpose — Google raised eyebrows when it made investments in both genetic screening company, 23andMe (started by Google co-founder Sergey Brin’s wife) and Navigenics, another company that allows you to see your genome. Now under scrutiny in states like New York, services like these are being forced to admit they are little more than a vanity. “23andMe’s services are not medical … they are educational,” 23andMe spokesman Paul Kranhold told Forbes.

Attack of the Mac clones — Computer maker Psystar continues to grab headlines with its OS X-enabled (Apple’s operating system) computer. Apple does not allow 3rd parties to create Mac computers, whereas dozens of manufacters make Windows-based PCs. But with Apple’s market-share and demand on the rise, there certainly seems to be a market out there for a very low-cost Mac. Apple’s Mac Mini is currently the cheapest they offer at $599, but this Psystar system would be $399 with no software installed. Naturally, the legality of making these systems without Apple’s blessing is an issue.

John Battelle is first “John” in Google, shows Google is broken — Look, we all like John Battelle, the founder and chairman of Federated Media (which runs some of the ads on VentureBeat), but come on, he’s the number one result when you type “John” into Google’s search box? “I mean, I am ahead of Lennon. The Gospel. Er…McCain,” Battelle himself notes. I could go on: John Adams, John Hancock, John F. Kennedy, etc. With all due respect, I think it’s fair to say that most of the world has no idea who John Battelle is, yet that’s who they’ll find when they search for one of the most common names in the English language.