Apple has won its copyright-infringement claim against the Mac cloning company Psystar.

Psystar sold PCs that ran Apple's OS X software. The computers functioned essentially the same as standard Macs, but were sold for less than Apple-built machines. Psystar argued that since the OS X software was legally purchased, the right of first sale allowed them to resell the operating system on custom-built computers.

However, the courts sided with Apple (pdf), and agreed that "customers were contractually precluded from utilizing Mac OS X on any computer hardware system that was not an Apple computer system." In addition, Psystar circumvented "lock-and-key technological measures to prevent Mac OS X from operating on non-Apple computers," which violates the Digital Millennium Copyright Act (DMCA).

Groklaw provides analysis of the court order and concludes:

That means damages ahead for Psystar on the copyright issues just decided on summary judgment, at a minimum. The court asked for briefs on that subject. In short, Psystar is toast.

The court's message is clear: EULAs mean what they say; if you don't want to abide by its license, leave Apple's stuff alone.

Psystar, which is also fighting a second infringement case in Florida, will likely appeal the decision, but for now it looks like you Snow Leopard fans will be forced to stick with Apple-approved computers. Or build your own Hackintosh.

Adobe is not happy about the iPhone's lack of Flash support and the company is accusing Apple of unfairly restricting the technology.

iPhone users who visit the Flash installation site are greeted with a not-so-subtle message claiming:

Flash Player not available for your device.

Apple restricts use of technologies required by products like Flash Player. Until Apple eliminates these restrictions, Adobe cannot provide Flash Player for the iPhone or iPod Touch.

Adobe Flash is a multimedia platform commonly used to add interactivity to Web sites. While it has been criticized for being resource intensive, Flash is still the most popular approach to to integrate animations and video into Web pages.

Since the iPhone's debut, the device's Safari browser has been unable to play Flash, and users routinely lament the loss of nearly all online video content.

Wired.com writes:

Apple declined to comment, but some iPhone developers speculate Apple opted against a full Flash experience because of technical problems it could raise on the handset, such as battery drainage or sluggish web browsing.

Last summer's release of the speedier iPhone 3GS did not ease Flash restrictions. Apple may have chosen to block Flash not for performance reasons, but because interactive Flash applications and games could compete with the iTunes App store.

Do you agree with Adobe that Apple is unfairly restricting technology by limiting Flash on the iPhone? Or is the message on Adobe's Web site simply propaganda aimed to shift the blame from Flash's performance to Apple's anticompetitive nature?

Riding the wave of new Apple products announced yesterday is a new gesture-based, multi-touch mouse.

The Magic Mouse continues Apple's war on buttons by removing all those pesky clickers. What's left is an aluminum base topped by a smooth white touch-sensitive polycarbonate panel.

Apple was criticized for the single button hamburger shaped mouse that shipped with the original iMac. Many Mac and PC users favor the greater control that a dual-button mouse with scroll wheel provides. In response, Apple released the Mighty Mouse in 2006 that incorporates four functional buttons and a trackball.

The new button-free Magic Mouse signals a return to minimalism while including all the functionality of multiple buttons. Gizmodo thinks it's a welcome change:

The Magic Mouse is undoubtedly the best mouse Apple's made in years. They've taken their knowledge in trackpad finger gestures and one-piece manufacturing and made this delicate, yet sturdy, bridge-shaped mouse.

The Magic Mouse will be included with new iMacs or can be purchased alone for $69. Currently the Magic Mouse is only compatible with Mac OS X, but broad support, including PCs, is likely to happen soon.

In a press release Tuesday AT&T announced it will now allow iPhone VoIP apps, like Skype, to run on the cellular network.

AT&T previously restricted all VoIP apps, which transmit voice calls over a data network, for use only when an iPhone was on a Wi-Fi network. With these restrictions dropped, iPhone customers can now use AT&T's 3G data network to make calls without using their wireless minutes.

AT&T claims this change was due to customer demand:

In late summer, AT&T said it was taking a fresh look at VoIP capabilities on iPhone for use on AT&T’s 3G network, consistent with its regular review of device features and capabilities to ensure attractive options for consumers.

“iPhone is an innovative device that dramatically changed the game in wireless when it was introduced just two years ago,” said Ralph de la Vega, president and CEO, AT&T Mobility & Consumer Markets. “Today’s decision was made after evaluating our customers’ expectations and use of the device compared to dozens of others we offer.”

Recent FCC scrutiny over Apple's rejection of the Google Voice app, as well as a congressional push for net neutrality are likely also responsible for AT&T's change of heart.

New VoIP (Voice over Internet Protocol) apps that take advantage of 3G capabilities should be available soon. However, AT&T's 3G network where I live in Atlanta is about as reliable as the Detroit Lions, so I doubt I will be dropping my traditional voice service any time soon.

UPDATE: 2:09 p.m. Just updated the carrier profile for my phone via iTunes. I had to reboot, but MMS is now working and I have sent and received a few messages. Now that this is done - Bluetooth remote profile puhhhhleeeeese?

MMS (multi-media messaging) is finally going to be unlocked on the iPhone. ATT's Facebook Page says it should be out by "late morning" Pacific Time - translating to early afternoon for those of us in the Eastern Time zone.

If you can't wait till the update comes through, the iPhone blog has a nice walk through that might sate you for a few minutes.

But why do we care? (Besides the fact that it's a feature long available on practically every phone known to man.) You can e-mail pictures and videos from the iPhone already - and when you use email they usually get there. Plus, on cell phone networks, MMS can sometimes be a crapshoot.

The real reason this is a relief, IMHO (in my humble opinion), is the nasty way AT&T handles incoming MMS messages from friends.

Under the old MMS system, iPhone users received a text message, with a link, a message ID and a password. So not only did it require extra steps to see the message, it was as if the user interface was purposefully designed to keep you from seeing that cute picture of a bunny your friend just had to send you.

Of course, the new system comes with it own issues - mainly what the additional load of iPhone users sending and receiving MMS's will do to AT&T's seemingly already overtaxed network. PC World has a decent look at that issue (which I found via a tweet from @NPRALLTECH on Twitter).

So what are your thoughts? Is this a feature you were chomping at the bit for, something you don't think you'll ever use, or are you somewhere in between? (Personally I'm still waiting for the Bluetooth remote profile to work so I can change tracks via my Bluetooth headphone ...)

Swiping a GPS-enabled phone could ruin your plans for the weekend.

Cell phone thieves beware: that shiny iPhone you just nicked from a naive tourist could be leading police to your location quicker than a trail of donuts. New GPS features such as Apple's Find My iPhone tool allow users to locate lost or stolen phones on the Internet.

Stories of elaborate iPhone rescue missions such as this adventure posted by Kevin on his blog at Happywaffle.com are popular online topics. And, according to the Pittsburgh Post-Gazette, Find My iPhone may have snagged its first official arrests this weekend.

Ben Parr at Mashable praises these new tracking features:

With GPS technology becoming more and more prevalent, we’re hoping to hear more of these stories, and that they will make crooks think twice before committing robbery or a more serious crime. Find My iPhone is just the beginning of a new technology wave that helps us fight back.

Most tracking services require users to opt in before losing their phone, and many, such as Apple's MobileMe, require a monthly fee. Also, phones can only be located while powered on, so clever thieves and dead batteries could always foil your detective work. But the satisfaction of solving your own phone mystery is still enticing.

Have you every used Find my iPhone or another GPS tracking service to locate your lost device? Were you successful?

Curious to know which iPhone apps are considered worthiest by the world’s leading bloggers and tech enthusiasts?  I had a chance to eavesdrop on an all-things-cool session at the Gnomedex technology conference in Seattle last week.  Here are a few apps that people mentioned.

These changed my life – at least for a minute!

AudioBoo lets you record and share mp3 audio files up to three minutes in length.  You can add text, titles, photos as well as geolocation info. (Free)

PocketMeter allows you to measure any room or distance using sound to bounce off objects.  You just point the iPhone’s microphone at the floor or wall and tap on the screen.  The app emits sound and measures the time it takes for the echo to return.  It can calculate distances between 8 inches and 13 feet within 0.4 inches of accuracy. ($0.99)

Sonar Ruler similarly uses echoes to measure distances up to 60 feet. ($0.99)

AppSniper is an app about apps.  It allows you to track apps when they go on sale and it tells you when they are within your price range. ($0.99)

Boxcar conveniently sends you push notifications anytime you receive a mention or a direct message on your Twitter account.  It conveniently works with most Twitter clients, so you can view a message once you receive a push. ($2.99)

Pocket Universe, an augmented reality app, is a planetarium in your pocket.  Just point your phone up to the sky, and it simulates the exact night sky above you, complete with the names of all the constellations.  The app works best on the iPhone 3GS, which has a digital compass and an accelerometer. ($2.99)

AutoStitch lets you create panoramas out of multiple pictures you snap with your iPhone’s camera. ($1.99)

Geocaching is a global treasure-hunting game where players can locate hidden containers or ‘geocaches.'  The app uses the iPhone’s GPS capability to provide a list of real-time information about geocaches near your location. It’s available in English, Dutch, French, German and Japanese.  ($9.99)

So what are your favorite iPhone apps right now?  Mine is Bump, which lets you exchange contact information with other iPhone users simply by bumping phones.  It certainly came in handy when I ran out of business cards at Gnomedex!

Apple reported record earnings on Tuesday. But what does that mean?

The BBC says the software company has a good problem: It can't make new iPhones fast enough.

"We are currently unable to make enough iPhone 3GSs to meet robust demand, and we're working to address this," said Apple's chief financial officer Peter Oppenheimer in a conference call about quarterly earnings, the news site says.

What's more, Apple plans to release the popular new iPhone - which has a video camera and is touted as faster than its two predecessors - in 20 new countries in August. The phone is expected to be sold in a total of 70 countries by the end of the year.

TechCrunch has a different take. The blog says the report is an indicator that the basic iPod - once Apple's flagship mobile device - is effectively dead.

It's been replaced with the iPod Touch, which looks more like the red-hot iPhone and accesses the Internet with Wi-Fi, which old-school iPods don't. The blog does some math to determine that old iPods are sinking otherwise stellar numbers for Apple's mobile devices, or "pocket products":

Of the three pocket products, two saw huge year-over-year growth this quarter, one did not. While iPhone sales grew a massive 626% year-over-year, iPod touch sales actually grew just about 130% too. And while Apple may consider the iPod touch outside of the iPod line, for financial purposes, it’s still counted with them. So when you hear that overall the iPod family saw a 7% decline year over year, you know that the actual iPod numbers minus the iPod touch, must not be very good at all.

And while Apple wouldn’t specifically give those numbers, Oppenheimer did note that the iPhone and iPod Touch are very much “cannibalizing” the stand-alone MP3 iPod market.

Here are some highlights from the report, compiled by Fortune, a CNN.com content partner:

• Mac sales: 2.6 million units, up 4% year over year
• iPhone sales: 5.24 million units, up 626%
• iPod sales: 10.2 million units, down 7%
• Gross margin: 36.3%, up from 34.8% last year
• Cash holdings: $31.1 billion, up $2.2 billion for the quarter.
• Guidance for the September quarter: revenue between $8.7 and $8.9 billion, EPS between $1.18 and $1.23, and gross margins of 34% — considerably higher than expected.

What do you make of the numbers? Are you among the iPhone converts? Feel free to chime in with comments.

False alarm: Apple is not - at least not yet - approving iPhone apps containing pictures of naked women.

The blogosphere lit up Thursday with reports that Hottest Girls had the distinguished privilege of being the first application approved for sale in the iTunes App Store that contains nudity. The Hottest Girls iPhone app is not new, but as of Thursday, it added photos of topless women to its gallery of "2200+ sexy bikini babes and lingerie models."

Of course, porn has long been accessible on the iPhone through its Internet browser, but this appeared to mark the first time Apple has sanctioned images of naked women for the popular device.

Some speculated the "change" in Apple's porn policy was a result of expanded parental controls in the new iPhone 3.0 OS software.  Age restrictions can now be set to prevent mature downloads from the App Store.

According to a Gizmodo article that seemed oddly excited by this news:

This is not just an application that downloads softcore content from the Web, bypassing Apple's censorship. There is no censorship here, as this is truly an Apple approved app "rated 17+" for "frequent/intense sexual content or nudity" and "frequent/intense mature/suggestive theme."

The editors at Wired.com took the Hottest Girls app for a test drive and were underwhelmed. "The application itself is terrible," wrote Wired's tester, "but you can be sure that there will be more, and better, very soon."

Shortly afterwards, the Hottest Girls app, which claims to be the first officially sanctioned iTunes app to contain topless photos, disappeared from the iTunes store.

A website allegedly run by Hottest Girls app developers explained the disappearance:

The Hottest Girls app is temporarily sold out. The server usage is extremely high because of the popularity of this app. Thus, by not distributing the app, we can prevent our servers from crashing. Those who already have the app will still be able to use our app. To answer the question on everyone's mind: Yes, the topless images will still be there when it is sold again.

By Thursday afternoon, Apple's public relations team felt the need to weigh in. From Apple spokesman Tom Neumayr:

Apple will not distribute applications that contain inappropriate content, such as pornography. The developer of this application added inappropriate content directly from their server after the application had been approved and distributed, and after the developer had subsequently been asked to remove some offensive content. This was a direct violation of the terms of the iPhone Developer Program. The application is no longer available on the App Store.

Did Apple do the right thing? Is the fuss over this episode just silly? And, given how lucrative the pornography industry is, is it just a matter of time before nudie pics become available through the App Store?

I purchased my 1st-generation iPhone on eBay in 2008. For a hefty $250 price tag I received a bundle of electronics that was outdated and no longer protected by Apple's famous warranty, but it was all mine.

My iPhone came with no contractual obligations to AT&T, nor could Apple threaten to revoke its non-existent warranty if I chose to unlock or jailbreak the device. Despite what corporate lawyers attempting to stretch the authority of the The Digital Millennium Copyright Act of 1998 (pdf) may argue, that phone and all its antiquated chips and transistors belonged to me.

It is now 2009 and Apple is once again tempting me with the release of the iPhone 3GS, but at $199 is it really a bargain?

New iPhones are locked into a service agreement with AT&T because of the subsidies AT&T provides for the sale of each phone. But even after these service contracts expire, essentially ending a rent-to-own agreement, iPhones remain locked to AT&T. It's as if you bought a TV that only works if you subscribe to Comcast.

There are programs to unlock the iPhone (software is not yet available to unlock the 3GS, but unlocked phones can be purchased on eBay), and unlocking a phone was granted a legal exemption from the DMCA, but Apple opposes these hacks (pdf) and counters them with each new version of iPhone software.

I enjoy my iPhone, but I do not approve of Apple's attempt to control the device after the point of sale. While I would like to trade in my 1st-generation 4GB iPhone for a shiny new 3GS, I am hesitant to sign a two-year contract that dictates how I will use my phone.

Should I trust that hackers such as those at blog.iphone-dev.org will remain one step ahead of Apple's locking mechanisms and purchase an expensive contract-free iPhone 3Gs on eBay? Or should I overcome my moral objections and play by Apple's rules? Your thoughts?