Apple Computer Inc. is entitled to use the apple logo on its iTunes Music
Store, a judge ruled Monday, rejecting a suit filed by Apple Corps Ltd., the
guardian of The Beatles' commercial interests.
People shop inside an Apple store in central
London March 29, 2006. Apple Computer is not liable for trademark
infringement against Apple Corps, the music company owned by the Beatles,
a judge in London's High Court ruled on Monday.
[AP] |
Apple Corps contended that the computer company had broken a 1991 agreement
in which each side agreed not to enter into the other's field of business. But
Judge Edward Mann ruled that the logo was used in association with the store,
not the music, and thus was not a breach of the agreement.
"I conclude that the use of the apple logo ... does not suggest a relevant
connection with the creative work," Mann said in his written judgment. "I think
that the use of the apple logo is a fair and reasonable use of the mark in
connection with the service, which does not go further and unfairly or
unreasonably suggest an additional association with the creative works
themselves."
Mann refused Apple Computer's application for an immediate interim payment of
1.5 million pounds ($2.8 million) from Apple Corps toward its legal costs,
pending further hearings. Apple Corps faces a similar bill for its own legal
expenses.
Lawyers for Cupertino,Calif.-based Apple Computer had argued it was
conducting its business legally and that consumers are smart enough to tell the
difference between the logos.
Apple Corps uses a shiny green apple as its logo, while Apple Computer has a
cartoon-like apple with a neat bite taken out.
Lawyers for each side tussled during the hearing over advertisements for
iTunes featuring musical acts U2, Eminem and Coldplay, using the logo. The judge
confessed early on that he owned an iPod.
The 1991 agreement ended previous lengthy litigation over the logo. Apple
Computer told the court that it paid the Fab Four's company $26.5 million as
part of the 1991 out-of-court settlement, and in return had received "a
considerably expanded field of use." The terms of the deal were kept
confidential at the time.
Apple Corps was started by the Beatles in 1968 and is still owned by Paul
McCartney, Ringo Starr, the widow of John Lennon and the estate of George
Harrison.
Apple Computer was formed in 1976, when college dropouts
Steve Jobs and Steve Wozniak filed partnership papers on April Fools' Day.
Their ubiquitous iPods first came out in October 2001 and the iTunes music
store opened for business in the United States in April 2003; it is now
available across Europe, in Australia, Japan, and Canada.