Beatles Lose Apple Suit
Red Herring
London High Court rules in favor of iPod maker in trademark infringement case.
May 8, 2006
Apple Computer won Monday in London's High Court in the trademark infringement suit brought by the Beatles' record company, Apple Corps.
The record company, owned by Paul McCartney, Ringo Starr, John Lennon's widow Yoko Ono, and George Harrison's widow Olivia Harrison, had sued Apple Computer, claiming that its iTunes Music Store violated a 1991 agreement between the two companies regarding in which areas the two companies could use their apple logos..
The two companies first battled over the Apple logo back in 1981 and settled for $80,000.
Under the two companies' 1991 settlement, Cupertino, California-based Apple Computer paid London-based Apple Corps $26 million after the record label claimed that Apple Computer�s music synthesizer software violated the earlier agreement.
The trial began when Lord Grabiner played a brief excerpt of the disco song "Le Freak" by Chic to demonstrate iTune.
Mr. Justice Mann, the judge who ruled in the latest dispute, said he found no infringement from iTunes. "I find no breach of the trademark agreement has been demonstrated," he said in his judgment Monday. "The action therefore fails."
"I think the use of the apple logo is a fair and reasonable use of the mark in connection with the service," he added.
Apple Corps uses a green Granny Smith apple in its logo, while Apple Computer uses an apple with a bite removed.
Shares of Apple Computer rose $1.10 to $72.99 in recent trading.
Putting the Beatles on iTunes
The record company said it planned to appeal the decision. Apple Corps was ordered to pay court costs. Lord Anthony Grabiner, who represented Apple Computer, asked for a £1.5-million ($2.8 million) interim payment for the computer maker's legal costs. The rest could cost another £1 million ($1.9 million).
Apple Corps had sought multimillion-pound damages from Apple Computer for use of the logo. The record company's lawyer, Geoffrey Vos, said Apple Computer had given users access to 3.7 million music tracks and there had been over a billion downloads from iTunes.
Apple Computer CEO Steve Jobs hailed the decision. "We are glad to put this decision behind us," he said, according to Reuters. "We have always loved the Beatles, and hopefully we can now work together to get them on the iTunes Music Store."
Apple Computer has been trying since 2003 to get music from the Beatles onto iTunes, but the music is still not available for download legally from iTunes or any other legitimate online music service. Apple Computer even offered $1 million for the name Apple Records.
Apple Corps said no decision has been made yet when the Beatles' songs would be available for purchase online.