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Beatles' Apple Settles Trademark Lawsuit With Jobs's Apple

Posted on: Wednesday, 7 February 2007, 09:00 CST

By Eric Pfanner

The two warring Apples - one makes computers and iPods, the other manages the Beatles' business interests - said Monday that they had decided to end their long-running trademark fight over their shared name.

Apple Inc., which recently changed its name from Apple Computer, and Apple Corps, which is owned by Paul McCartney, Ringo Starr, the George Harrison estate and Yoko Ono, said they had agreed to end a trademark lawsuit centering on Apple Inc.'s use of the name on its iTunes digital music service. The agreement immediately raised speculation that the Beatles' music, until now unavailable on legitimate digital music services, might soon be licensed for downloads from iTunes.

Neither company would comment directly on that prospect, though both sides said they were happy to have worked things out.

"The years ahead are going to be very exciting times for us," said Neil Aspinall, manager of Apple Corps, in a statement. "We wish Apple Inc. every success and look forward to many years of peaceful cooperation with them."

Steve Jobs, chief executive of Apple Inc., sounded a similarly conciliatory note.

"We love the Beatles, and it has been painful being at odds with them over these trademarks," he said. "It feels great to resolve this in a positive manner, and in a way that should remove the potential of further disagreements in the future."

The settlement follows a court decision in favor of Apple Computer by a British judge, who ruled last year that the company had not violated a 1991 agreement with Apple Corps in which the two companies agreed to stay out of each other's lines of business.

Apple Corps, which had accused Apple Computer of breaking the agreement by using the name in connection with iTunes, was pressing an appeal of the judge's decision. It was set to be heard this month.

The companies said Monday that they had agreed to let Apple Inc. continue to use its name and logo on iTunes. Apple Inc. will "own all of the trademarks related to 'Apple' and will license certain of those trademarks back to Apple Corps for their continued use," the companies said. Beatles records will continue to appear under the Apple Corps green Granny Smith apple logo, for instance.

The lawsuit will end, the companies said, with both sides picking up their legal costs. Financial terms were not disclosed.

Speculation about a deal to sell Beatles songs on iTunes reached fever pitch on fan web sites and blogs after Jobs appeared to give the band a highly public nod last month. In introducing the iPhone, he demonstrated the device's music playing capabilities by displaying Beatles album covers and playing the song "Lovely Rita" for the audience. At the same time, Apple also dropped the "Computer" from its name.

Source: International Herald Tribune

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