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USA Today Delves Into Beatles/Apple Lawsuit

USA Today Delves Into Beatles/Apple Lawsuit

by , 7:00 PM EDT, September 20th, 2004

USA Today has delved into the Beatles vs. Apple lawsuit. While the article doesn't add much to the coverage from several sources last week, it does include some comment from industry watchers that may be of interest to Apple watchers.

The article's basic point is to rehash rumors that entertainment magazine Variety floated last week. The entertainment magazine reported that The Beatles and Apple were close to a settlement, and that industry speculation was that the settlement might include Sir Paul McCartney joining Apple's board of directors (see TMO's full coverage for more information on Variety's article and other background information on the lawsuit).

The article offers comment from a trademark specialist and a researcher for GartnerG2 on the case. From USA Today:

"It seems that Apple Computer's in a pretty tough spot, since they signed a prior settlement agreement," says Houston lawyer David O'Neil, a trademark specialist with O'Neil and McConnell. "That's why the settlement numbers are going to be so big. They promised to stay out of the music business, and they didn't."

O'Neil sees as natural any talks aimed at getting the Beatles catalog onto iTunes. Apple Corps is "in a perfect position to get the best price for their music," because it has the upper hand over Apple Computer "for violating their agreement."

Mike McGuire, research director for industry tracker GartnerG2, says the expected multimillion-dollar settlement "shows you what the stakes are in the digital music business."

In addition, USA Today throws some additional speculation into its coverage -- similar to speculation we raised in The Spin of last week's article -- that a settlement could include The Beatles licensing their catalog to Apple for the iTunes Music Store (iTMS).

On a minor note, we should also note a small mistake made i the article. USA Today says:

When Apple Computer began selling music software in 1989, Apple Corps again sued, and the settlement cost the computer company $26.5 million. Apple Computer agreed not to use the trademark in music-related activities. But Apple Corps filed suit again last year when the computer company launched its iTunes Music Store. (The URL www.applemusic.com takes users to an iTunes page.)

Apple was not selling "music software" in 1989, but rather Macs capable of playing music, and that was the source of renewed legal friction between the two companies at that time.

You can find more of USA Today's coverage at the newspaper's Web site.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: I am naming my company iPod..

Just cause I love and admire Apple and thier innovative products so much, so much. And all the world needs is Love. All ya need is Love. Sometimes it will cost ya though.

I sure SJobs will be cool with it as long as my iPod company stays out of music. My iPod company will be manufacuring tractors. Coolest tractors you ever did see!

Close Name:Guest
Subject: Apple Electric

There is ANOTHER group Apple Corp. should be sueing. We have a local electrical shop here in town that is called "gasp" Apple Electric. Rumor has it they have done repairs to radios that just happen to be capable of playing Beattles music, if your able to find a pathetic Baby Boomer radio station. Heck I wouldn't be surprised if they haven't worked on Apple Computers in the past. Just because the owners last name is Apple doesn't give him any right to take customers away from the Beattles or Macintosh.

Close Name:kenaustus Posts: 602 Joined: 27 Jun 2003
Subject:

I would tell Apple Corps to settle for x million and give us exclusive rights to sell the Beatles music on line or wait a few years for it to get into court and take your chances.

Just think of how many times Apple could have been sued if they had named the company Acme . . .

Close Name:Guest
Subject: Apple, what exactly do they do?

I know that apple (the uk one) ownes the beatles music, but it would be interesting to see where they make most of their music from. Would it be the other other apple?

Close Name:Guest
Subject: Apple Corps Reaches a Record Low!

It is ridiculous that Apple Corps is suing Apple Computer. While Apple Corps may have an agreement that Apple Computer wouldn't enter the "Music" business, this is taking the agreement too far off track. The assumption was that Apple Computer would not interfere with Apple Corps business, and they haven't. Apple Corps is just trying to take a big bit out of the juicy Apple Computer. Apple Corps has not furnished any evidence that supports that Apple Computer is actually harming Apple Corps business model or practices, and further Apple Corps is not saying that Apple Computer has "rushed" to market something Apple Corps was planning on doing. All in all, this is just a way for Apple Corps to raise a quick buck, and it's disturbing.

Close Name:Guest
Subject: Looking to the future

Although Apple Computer may have a strong case that they have not infringed on Apple Corps based on their agreement as of today, Apple's future plans may include signing up artists directly for the Music Store, bypassing the labels. So Apple Computer could be looking to settle with Apple Corps once and for all, so that they can move forward.

This could look very much like Microsoft's $150M investment in Apple back in 1997, where Microsoft admitted no wrongdoing but essentially paid off Apple to end any further litigation.

Close Name:AFCdtLoeb Posts: 2533 Joined: 20 Jul 2004
Subject: Re: Looking to the future

Quote
Anonymous wrote:
Although Apple Computer may have a strong case that they have not infringed on Apple Corps based on their agreement as of today, Apple's future plans may include signing up artists directly for the Music Store, bypassing the labels. So Apple Computer could be looking to settle with Apple Corps once and for all, so that they can move forward.

This could look very much like Microsoft's $150M investment in Apple back in 1997, where Microsoft admitted no wrongdoing but essentially paid off Apple to end any further litigation.

I don't see the same thing happening. I see Apple Corp. continuing to come back like a tax collector at regular intervals to collect.

Close Name:akcarver Posts: 144 Joined: 23 Oct 2001
Subject:

Quote
AFCdtLoeb wrote:
I don't see the same thing happening. I see Apple Corp. continuing to come back like a tax collector at regular intervals to collect.


One for you 19 for me.
Be thankful I don't take it all.

Close Name:Guest
Subject: The Apple Tax will be passed on to the custumer

This means you.

Close Name:Guest
Subject: as george said

gonna play the
sue me sue you blues.

Apple Computer never should have signed that agreement with Apple Corps "all those years ago." Without that, Apple Corps would have had a tough time battling it out in court, as the word "apple" was in common use a wee bit before 1968.

Why haven't the Beatles sued Fiona Apple?

Close Name:Guest
Subject: Do say it if you aren't going to do it

If you sign an agreement stating that you will not do something, just because time passes doesn't mean you didn't agree to it. I have no sympathy for Apple Computer at all. I would also hope that Apple's Music Library would not end up in the hands of this cumputer company that has to keep being proped up by someone else. It would be like Micheal Jackson owning the Beatles Catalog of music.

Close Name:Guest
Subject: APPLE IS THE BEATLES' TRADEMARK PERIOD.

APPLE COMPUTER SHOULD HAVE BEEN NAMED SOMETHING ELSE FROM THE START. LONG LIVE THE BEATLES! THE WORLD'S BEST SELLING ARTIST EVER.

Close Name:Guest
Subject: Actually you're wrong...

Apple only said that it would refrain from selling PHYSICAL music. Apple has never shipped a single CD with music on it. Therefore, I think that Apple Corps is going to have a difficult time with this...

Close Name:AFCdtLoeb Posts: 2533 Joined: 20 Jul 2004
Subject:

Bur they do sell an awful lot of those new-fangled iPod things...

Close Name:Guest
Subject: Majic Alex

Does Magic Alex get a cut of this since he was the VP of Apple Electronics and Recording or something like that.

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject:

What is the latest development, if any?

Close Name:Guest
Subject:

Quote
Mace wrote:
When is the latex dell optiplex coming out, if any to say about it have I?

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