Apple Inc and Apple Corps Ltd issued a joint press release on February 5, 2007, announcing that the parties had entered into an agreement regarding the use of the name "apple" and the companies' apple logos. Disputes between the two companies over the names and logos have been going on for almost 30 years. Apple Corps Ltd, the guardian of the Beatles' music, first sued what was then Apple Computer Inc for trade-mark infringement in 1978. In 1981, the computer maker paid $80,000 and agreed not to enter the music business. Under an agreement made in 1991, Apple Inc agreed to pay US$26.5m for the right to use "apple" for computers and software, while Apple Corps Ltd maintained the right to use the mark for music. Most recently, Apple Corps Ltd argued that Apple Inc's use of the logo on its online music store, iTunes, was a breach of the 1991 agreement. Last May, however, an English High Court judge found otherwise, holding that Apple Inc used its logo in association with the store but not with music. The latest agreement, which replaces the one made in 1991, gives Apple Inc ownership of all the trade-marks related to "apple". According to the agreement, Apple Inc. will license certain of those trade-marks back to Apple Corps Ltd for its continued use. Each side will pay its own legal costs. No other terms were disclosed. The press release made no mention of Beatles' downloads on Apple Inc's iTunes music store. The catalogue of Beatles' songs is presently not available on iTunes or through any other online service. For the joint press release, visit: http://www.apple.com/pr/library/2007/02/05apple.html To read related news articles, visit: http://news.lp.findlaw.com/ap/o/51/02-05-2007/a2190005bbcf3659.html; and http://tinyurl.com/2cyuwr Summary by: Clare McCurley

E-TIPS® ISSUE

07 02 14

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