Back in 1991, Apple Computer had made a $30 million settlement with Apple Corps, with Apple computer agreeing that they would never enter the music production business. This went well up until 2003 when Apple launched their iTunes online music store. Within a very short period of its launch, it turned out to be the leading music download stores, which till this day covers about 80% of the market. As a result, Apple Corps tried suing Apple Computer accusing them of breaching a 1991 trademark agreement that forbid Apple Computer from entering into the music business.
When this case went to court, Judge Edward Mann of Britain's High Court rejected the suit, ruling that Apple Computer is entitled to use its logo in association with its iTunes music store. As Apple was not using its logo with the music itself or even creative work, the judge ruled that this was not breaching its contract with Apple Corps. The costs of this legal action is expected to be well over £3 million (>US5.5 million) and Apple Corps has agreed to pay the defendant's bill of around £2 million (~US$3.7 million).
The Beatles label Apple Corps. plans on appealing as they claim that they have clearly showed how extensively Apple computer has broken their agreement, particularly since their contact with Apple Computer prohibited them from using either the name 'Apple' or the logo of the apple with any music distribution.
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But Mr Justice Mann ruled that Apple Computer had not breached a trade mark agreement with Apple Corps by using the logo and name to sell music. He granted Apple Corps permission to appeal against his ruling. Total costs of the action are estimated at well over £3 million. Apple Corps agreed to pay the defendant's costs bill - put at around £2 million but still subject to detailed assessment. Some further detail can on this MacNewsWorld article. |
This is a fairly substantial loss for Apple Corps. over just a trademark dispute, however maybe they will have better luck when it comes to their appeal. Probably the best thing Apple Corps. could have done would have been to make The Beatles music available via the iTunes music store. Suing Apple Computer over trademark disputes does not really make much sense, particularly since not many consumers would associate the Apple logo as a music label and it is not like that Apple Corps. is selling any computer equipment either.
Source: ITN News - UK
