Beatles come together with iTunes All you need is love (and a commercial agreement)

The Beatles’ songs are now available on iTunes after a long-running dispute between Apple Corps (owned by the Beatles) and Apple Inc. over who owns the right to use the name “Apple” and the “Apple” logo.

Both sides registered the name and logo as trademarks. The Beatles did it in the 1970’s relating to music and Apple Inc. did it in the 1980’s relating to computers.

They were both able to register the “Apple” name and logo as trademarks because:
1. they were distinctive signs (words and logos);
2. the names and logos were represented graphically; and
3. the names and logos differentiated their goods and services (Apple Corps dealt with music and Apple Inc. dealt with computers).

The trouble is that over time Apple Inc. moved into music and eventually set up the iTunes music store by which time their “Apple” trademarks became associated with music as well as computers.

Over the years there have been a number of agreements Apple Corps and Apple Inc. to settle “turf wars” about the “territory” of their respective trade marks, but disputes between them have continued.

To resolve things conclusively, in 2007 Apple Inc. bought all of the Beatles’ trademarks related to “Apple” and licensed them back to Apple Corps so they can use them with Beatles’ sound and video recordings. The actual terms of the settlement were confidential but it was rumoured they cost $500 million.

Now, at the end of a long and winding road of disputes and settlement, there’s a new deal to give Apple Inc. the exclusive right to sell Beatles’ music digitally on-line through iTunes – just in time for Christmas.

The significance of the exclusive licence is that Apple Corps and EMI, who own the right to a large number of Beatles’ recordings, cannot grant the same right to anybody else or sell their music digitally themselves. In addition, Apple Inc. can also sue anybody for selling the Beatles’ songs for download without needing permission from EMI and Apple Corps to do so.

In return for such a generous licence, Apple Inc. will pay regular royalties, so everybody’s happy. If, in the words of the Beatles’, “I need money, (that’s what I want)”, iTunes could be the solution.

Written by Sean O'Riordan, a Solicitor in the Nelsons Commerce and Technology group. To find out more about our Commerce & Technology group, click here.