Citing `economic factors' amid the downturn, the Miami-based `maverick' startup Psystar last week filed for bankruptcy. Psystar's bankruptcy filing implies that Apple's ongoing lawsuit against the controversial firm - for flouting Apple's Mac OS X licensing terms by doggedly selling Mac clones like Open Computer - would be greatly affected.

In its bankruptcy protection filing, Psystar said: "Debtor sales have been greatly affected by the decrease in consumer spending. The financial crisis has also caused creditors to tighten up their terms and become more demanding for immediate payment."

Though Apple file a lawsuit against Psystar last year for copyright and trademark infringement for selling Mac OS X on non-Apple hardware, the company's Chapter 11 bankruptcy protection petition would apparently reduce the damages it would have to pay Apple.

Talking about the effect of Psystar's bankruptcy filing on the Apple suit against it, Jesse Fried - Co-director of the Berkeley Center for Law, Business and the Economy - said that generally, when a defendant in a copyright infringement case goes in for bankruptcy protection, the case is terminated after quickly determining how much money the defendant owes money to the copyright holder.

Fried elaborated saying: "The bankruptcy court may say this company owes Apple $10 million. But that doesn't mean Apple will get that money. They'll be treated like an unsecured creditor."