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Apple V Apple

by Robin Pilgrim, LawAndTax-News.com, London

11 May 2006

The Beatles' Apple Corps says it will appeal Monday's UK High Court judgement in favour of Apple Computer in their fight over the computer company's use of the apple logo in the iTunes Music Store.

"We will be filing a notice of appeal shortly. We certainly think we've got a reasonable prospect," said Eversheds lawyer Neil Mohring on behalf of Apple Corps.

Under a 1991 agreement, Apple Corps has the right to use the apple logo for producing and selling music, while Apple Computer can use the logo for selling computers and computer software.

In 2003, when Apple Computer asked Apple Corps to make Beatles' songs available for the iTunes store, Apple Corps refused, and said that the computer company had broken the 1991 agreement.

After a hearing in April, Mr Justice Mann gave his judgement on Monday, coming down firmly on the side of the computer company in dismissing the Beatles' suit. Although he agreed that Apple Corps has the exclusive right to use the logo for recorded music, even if sold in an intangible form like music downloads, he wrote: "What Apple Computer does is to take a musical recording, in the form of a digital version, and then carry out some technical processes to the file. That is not the sort of activity that a record company or record label would necessarily carry out in relation to musical content."

"I conclude that the use of the apple logo ... does not suggest a relevant connection with the creative work," wrote the Judge, in a ruling which has surprised many. "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."

During the hearing, Apple Corps Managing Director Neil Aspinall said that the company was itself preparing to offer Beatles' songs on-line, but gave no time-scale.

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