Apple victory goes to software group
Apple victory goes to software group
By Nikki Tait, Law Courts Correspondent
Published: May 9 2006 03:00 | Last updated: May 9 2006 03:00. Copyright by The Financial Times
Apple Computer emerged victorious from its latest legal battle with Apple Corps, the Beatles' record company, when a judge in London ruled yesterday that the former's iTunes music store had not breached a trademark agreement between the two groups.
Apple Corps had claimed that the 1991 agreement did not permit the US software giant to use the Apple mark on or "in connection with" music content - and that this was what its highly successful iTunes online music store was doing.
However, Apple Computer maintained that iTunes was essentially a delivery service and that the Apple mark was being used to "frank" the software, not the content.
In his ruling yesterday, Mr Justice Mann came down firmly on the side of the US company. He said the trademark agreement that gave Computer trademark rights within the field of computing and Corps' rights within the music field had been attempting to cater for a potential situation in which Computer had a service, within its own area, that was being used to transmit content which was within Corps' field of use.
The agreement's intention, said the High Court judge, was "to protect a fair and reasonable use of the mark when applied to the service".
"Provided that the mark is used in a reasonable and fair way on or in connection with the service, and genuinely. . .to denote a trade connection with that service (rather than with anything else), then the line will not be treated as crossed," he ruled.
The judge considered Computer's use of the Apple mark and logo - finding that the operation of the iTunes store by itself and the way the logo had been displayed did not "suggest a relevant connection with the creative work".
The judge went on to acknowledge that where the music store was offering exclusive tracks, special playlists or selections, special "boxed sets" and special recordings, the issues required "a little more consideration".
"The special music comes closest to the line," the judge said. But he went on: "However, I still do not think that the line is crossed."
Meanwhile Steve Jobs, chief executive of the US software giant, said his company was "glad to put this disagreement behind us".
"We have always loved the Beatles and hopefully we can now work together to get them on the iTunes music store," he said.
But Neil Aspinall, the Beatles' former road manager who has managed Apple Corps for more than 30 years, said that "with great respect to the trial judge, we consider he has reached the wrong conclusion" - and that his company would appeal.
Somewhat unusually, Mr Justice Mann said he would give the Beatles company leave to appeal, adding that he had not found the questions raised in the case to be "straightforward".
The clash between the companies over iTunes is the third big legal tussle they have had over use of the Apple mark during the past 25 years.
By Nikki Tait, Law Courts Correspondent
Published: May 9 2006 03:00 | Last updated: May 9 2006 03:00. Copyright by The Financial Times
Apple Computer emerged victorious from its latest legal battle with Apple Corps, the Beatles' record company, when a judge in London ruled yesterday that the former's iTunes music store had not breached a trademark agreement between the two groups.
Apple Corps had claimed that the 1991 agreement did not permit the US software giant to use the Apple mark on or "in connection with" music content - and that this was what its highly successful iTunes online music store was doing.
However, Apple Computer maintained that iTunes was essentially a delivery service and that the Apple mark was being used to "frank" the software, not the content.
In his ruling yesterday, Mr Justice Mann came down firmly on the side of the US company. He said the trademark agreement that gave Computer trademark rights within the field of computing and Corps' rights within the music field had been attempting to cater for a potential situation in which Computer had a service, within its own area, that was being used to transmit content which was within Corps' field of use.
The agreement's intention, said the High Court judge, was "to protect a fair and reasonable use of the mark when applied to the service".
"Provided that the mark is used in a reasonable and fair way on or in connection with the service, and genuinely. . .to denote a trade connection with that service (rather than with anything else), then the line will not be treated as crossed," he ruled.
The judge considered Computer's use of the Apple mark and logo - finding that the operation of the iTunes store by itself and the way the logo had been displayed did not "suggest a relevant connection with the creative work".
The judge went on to acknowledge that where the music store was offering exclusive tracks, special playlists or selections, special "boxed sets" and special recordings, the issues required "a little more consideration".
"The special music comes closest to the line," the judge said. But he went on: "However, I still do not think that the line is crossed."
Meanwhile Steve Jobs, chief executive of the US software giant, said his company was "glad to put this disagreement behind us".
"We have always loved the Beatles and hopefully we can now work together to get them on the iTunes music store," he said.
But Neil Aspinall, the Beatles' former road manager who has managed Apple Corps for more than 30 years, said that "with great respect to the trial judge, we consider he has reached the wrong conclusion" - and that his company would appeal.
Somewhat unusually, Mr Justice Mann said he would give the Beatles company leave to appeal, adding that he had not found the questions raised in the case to be "straightforward".
The clash between the companies over iTunes is the third big legal tussle they have had over use of the Apple mark during the past 25 years.
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