Apple Sues Apple, Again

Apple Corps Ltd and Apple Computer have once again clashed over the field of use of the Apple Computer trade-mark. Apple Corps, which is owned by the former Beatles and their heirs, has argued that while Apple Computer is entitled to produce programs like the iTunes Music Store, it should stay out of the music business if it uses the mark, a cartoon apple with a neat bite out of its side. Apple Corps' logo is a green Granny Smith apple. The two iconic Apple corporate groups were first embroiled in a trade-mark dispute in 1980, when Apple Corps sued Apple Computer for trade-mark infringement. The 1980 suit settled with an amount of $80,000 being paid to Apple Corps and Apple Computer agreeing to stay out of the music business. In 1989, Apple Corps again sued Apple Computer, claiming the ability of the latter's computers to play back MIDI music was a violation of the 1981 settlement agreement. This suit too settled, in 1991, with Apple Computer paying Apple Corps $26.5 million and, in turn, receiving a considerably expanded field of use. Apple Corps agreed to restrict its use of the apple to "creative works whose principal content is music," while Apple Computer was allowed "goods and services…used to reproduce, run, play or otherwise deliver such content." The 1991 settlement prohibited Apple Computer from distributing musical content on physical media and Apple Corps is arguing that Apple Computer is using the apple mark to distribute musical content on the iTunes Music Store. If this is the correct characterization, it is unclear whether the settlement covers the distribution of musical content through digital music files. Apple Computer is arguing that it has not violated the 1991 settlement agreement because the iTunes Music Store is merely data transmission and does not constitute a record label. Counsel for Apple Computer, Anthony Grabiner, asserted that no reasonable person would assume that Apple Computer created or owned the 3.5 million songs on the iTunes music store. As reported by the Associated Press, Grabinger argued that "it is obvious that the content comes from a wide variety of content providers, it is [also] obvious that Apple Computer is not the source or origin of the content" and, therefore, Apple Computer is not distributing music as a record label. For a news report at the opening of the case, see: http://makeashorterlink.com/?V1083250D For an update on closing arguments, visit: http://makeashorterlink.com/?U1892450D Summary by: Katharine McGinnis