Wednesday 21 March 2012

The Apple that was rotten to the Corps


Apple Corps v. Apple Computer

  

The Beatles founded a holding company for their record label Apple Records, which they names Apple Corps. In 1978 this company filed a lawsuit against Apple Computer for trademark infringement. This case lasted 3 years before finally being settled in the favour of Apple Corps to the sum of US $80,000. The conditions of the settlement stipulated that  Apple Computer would not enter the music business, and Apple Corps would not, in turn, enter the computer business.

However in 1986, Apple Computer added audio-recording capabilities to its computers, so , in 1989, this led Apple Corps to sue again, claiming that Apple Computer had violated their agreed settlement. A second settlement was reached, again in favour of Apple Corps.

Along with the monetary value, the settlement outlined each company’s respective rights to the term “Apple”. In short this stated that Apple Computer agreed that it would not package, sell or distribute physical music materials.

Once again in 2003, Apple Corps sued Apple Computer. This time for breach of contract for their use of the Apple logo for its iTunes Music Store, contending it a violation of the previous agreement. The trial opened in the High Court in 2006.

Apple Corps opening argument was that they had rejected a US $1 million offer from Apple Computer to use the Apple name on the iTunes store. However the court ruled in favour of Apple Computer, stating that “no breach of the trademark agreement [had] been demonstrated”

In 2007, Apple Inc. and Apple Corps announced a settlement of their trademark dispute. Apple Inc. would own all the trademarks related to “Apple” and will license certain of those trademarks back to Apple Corps for their continued use. This brought the ongoing trademark lawsuit to an end.

Commenting on the settlement, Steve Jobs, Apple’s CEO said, “We love the Beatles, and it has been painful being at odds with them over these trademarks. 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.”

Despite this, it would take a further 3 years until the official Beatles albums would be made available for sale on Apple’s iTunes Store.

Alex, Salkever (30/09/2004) "John, Paul, George, Ringo...and Steve?". BusinessWeek. http://www.businessweek.com/technology/content/sep2004/tc20040930_9317_tc056.html




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