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Comments: More on Applecorps Suit

Friday, September 12, 2003

By Applelinks Senior Editor John H. Farr

The Beatles, in the person of lawyers representing Applecorps, the music company established by the Beatles way back when, are suing Apple because of a trademark agreement that was supposed to keep Apple Computer out of the music business, and not for the first time, either. There could be an itneresting twist to this round, however.

According to Forbes.com,

Even after the Beatles parted in 1970, Applecorps remained in operation to look after the business interests of the group's remaining members. Apple Computer launched in 1977 in the garage of Steve Jobs' parents. Its early successes in the personal computer business caught the eye of Applecorps lawyers, and in 1981 the two companies signed a secret pact giving Apple Computer the right to use the Apple name for computer products, but reserved for Applecorps the right to use it for music-related enterprises. Apple Computer also paid a still-secret sum for the privilege.

What observers are saying now is that Apple may have to pay royalties to Applecorps from, say, iTunes sales, in order to satisfy the terms of the 1981 secret agreement. But what if Apple got something in return? At present there is no legal source for digitized Beatles music. This is pure speculation -- and we didn't think of it -- but what if the settlement of this latest suit resulted in Beatles songs being available for digital download via the iTunes Music Store?

We have to think that Steve Jobs saw this coming when he jumped into the music business with both feet. It would be very surprising if some kind of arrangment weren't already informally in place, under the circumstances.

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