Scrappy upstart Mac clone maker Psystar was handed its marching orders in court on Monday, and already their controversial clones are “out of stock” on their website. But is the legal battle really over?

Computerworld reports that Psystar has agreed to pay Apple almost $2.7 million in a partial settlement approved by a Federal judge on Monday, putting the brakes on a 17-month drama between the company and Apple. But the settlement payout will only come if the appeal process doesn’t work out.

Psystar’s company attorney confirmed that they will no longer sell computers with Mac OS X preinstalled, and late Tuesday their website showed all models as “out of stock”. But the David to Apple’s Goliath will continue to operate, now selling knock-off systems capable of running Apple’s OS.

“We will take the case up with the Ninth Circuit," said Psystar's chief attorney K.A.D. Camera of the Houston firm Camera & Sibley LLP, referring to the appeals process that could drag on for years. Psystar seems to be counting on this as a tactic to continue their business, which thus far seems mostly as a way to stand up to Apple in its insistence that Mac clones should be allowed to exist at all.

Apple has withdrawn the remaining six charges against Psystar (including trademark infringement and unfair business practice violations), but only for now — they retain the right to reintroduce them at a later time. Psystar has agreed to pay Apple a total of $2.68 million in damages, attorney’s fees and other costs, but can’t collect until “any and all appeals in this matter are concluded or the time for filing any such appeal has lapsed.”

For their part, Psystar appears to be taking a “never say die” stance: “We’re conceding nothing,” attorney Camera said fiercely.