Features
Gigs & Bytes: Apple Beats Apple
The Beatles’ record company had sued Apple Computer, claiming that using the apple mark violated a 1991 agreement between the two companies in which both sides agreed not to dabble in the other’s business.
This wasn’t the first legal tiff between Apple and Apple over the famous fruity logo. Over the years Apple founders Steve Jobs and Steve Wozniak have freely admitted that they named their company “Apple” because of their great love for The Beatles. And since Jobs and Wozniak made computers while Apple Corps released Beatle music, there really wasn’t much of a problem, although Apple Computer did promise Apple Corps that it would stay out of the music business.
That promise was modified in 1991 when Apple Corps became concerned about Apple’s position in the fledgling digital music biz. By the end of the 1980s, Apple Macintosh computers were popping up in recording studios, eventually leading the two Apple companies to a 1991 renegotiation of their original agreement. Although terms of that agreement were never released publically, Apple Computer paid Apple Corps $26.5 million so it could retain, as well as expand upon, the use of the apple logo.
But Apple Corps did not feel that the 1991 agreement included selling songs on the Internet, and filed suit against the computer company last year. In that suit, Apple Corps claimed the iTunes Music Store represented Apple Computer’s entry into the music business, thus violating the agreement.
But High Court Judge Anthony Mann disagreed, saying the computer company was using the apple mark for its store and not the music.
“I conclude that the use of the apple logo … does not suggest a relevant connection with the creative work,” Mann wrote in his judgement. “I think that the use of the apple logo is a fair and reasonable use of the mark in connection with the service, which does not go further and unfairly or unreasonably suggest an additional association with the creative works themselves.”
But it isn’t over until it’s over, and Apple Corps manager Neil Aspinall has said his company will immediately take the case to Britain’s Court Of Appeal.
“We felt that during the course of the trial we clearly demonstrated just how extensively Apple Computer has broken the agreement,” Aspinall said.
Meanwhile, Apple’s Steve Jobs said he was “glad to put this disagreement behind us.”
“We have always loved the Beatles, and hopefully we can now work together to get them on the iTunes Music Store,” Jobs said.