Intellectual Property Law

The trademark dispute between Apple Corps Ltd., the UK company that was the recording label for the Beatles, and Apple Computer Inc., developer of the iPod digital music players and iTunes music store, took center stage in a London courtroom last week. Apple Corps Ltd. is owned by former Beatles Paul McCartney and Ringo Starr and the heirs of deceased Beatles John Lennon and George Harrison.

In the trial, Apple Corps is alleging that Apple Computer's iPod and iTunes violate a 1991 settlement agreement entered into between the parties by using the "apple" trademark and apple logos in connection with downloading pre-recorded music from the Internet. The trial is the most recent in a series of legal disputes that dates back to 1978, when Apple Corps sued Apple Computer for trademark violations.

Under the 1991 settlement agreement, Apple Computer paid $26 million as part of a resolution by which the parties agreed to share the "apple" trademark. Specifically, the settlement provided that Apple Corps retained the right to use the "apple" trademark on any "creative works whose principal content is music" while Apple Computer was allowed to use the trademark on "goods or services . . . used to reproduce, run, play or otherwise deliver such content" but not on content distributed on physical media. So, the key issue to be decided at trial is whether Apple Computer is simply distributing music or whether it is doing something more in violation of the agreement.

The trial is expected to last through this week. Stay tuned for more details.

Today's Blogger:  Jeff Fisher