Apple, Beatles Give Peace a Chance: 30-YEAR BATTLE ENDS; IS ITUNES DEAL NEXT?

Feb 06, 04:03 PM

Current Headlines: By Troy Wolverton, San Jose Mercury News, Calif.

Feb. 6--Apple, the Silicon Valley company, and Apple Corps, the Beatles' record label, are finally burying the silver hammer, er, hatchet.

In a move that could clear the way for songs by the legendary band to be sold through Apple's iTunes music store, the two companies announced Monday that they've settled their long-running trademark dispute.

(To the tune of "Good Day Sunshine," perhaps?)

As part of the agreement, Cupertino-based Apple will own the name Apple, the apple logos and all related trademarks. The iPod maker will license some of those trademarks back to Apple Corps.

"We love the Beatles, and it has been painful being at odds with them over these trademarks," Apple Chief Executive Steve Jobs said in a statement. "It feels great to resolve this in a positive manner and in a way that should remove the potential of further disagreements in the future."

("All you need is love . . .")

Apple spokeswoman Natalie Kerris declined to say whether a deal to sell Beatles songs in iTunes will follow soon.

Elizabeth Freund, a spokeswoman for Apple Corps, also said the companies had nothing to announce on that topic.

But Kerris noted that company officials have said they'd like that to happen.

("Because you like me too much and I like you . . .")

Monday's deal -- as well as the prospective side agreement between the Beatles and iTunes -- had been rumored for weeks. Apple offers about 3.5 million songs through iTunes. The Beatles are one of a select few notable bands or musicians whose music is not sold by the store.

An official at EMI, the music label that owns the Beatles' recordings, said last fall that the company's songs would "soon" be available online. But company spokeswoman Jeanne Meyer declined Monday to specify when, although she did say EMI was in "ongoing discussions" with Apple Corps to that end.

("Let it be . . .")

The companies did not disclose the financial terms of the deal, other than that each company will be responsible for its own legal costs.

("You never give me your money . . .")

The Beatles record label and the Macintosh computer maker have battled over the rights to use the "Apple" name and symbol for nearly 30 years, dating back to the first years of Jobs' Apple. This deal marks the third settlement between them and replaces their most recent agreement, struck in 1991.

("We can work it out . . .")

Apple Corps sued Apple for the third time in 2003, charging that the iPod maker had violated the 1991 agreement with the launch of iTunes, which put Apple in the music business, an area it had earlier agreed not to enter. Apple Corps was dealt a setback in that suit last year, when a British court ruled in Apple's favor.

Apple Corps appealed the decision and a hearing was scheduled for this month. But that appeal will be canceled as a result of the new settlement, Freund said.

("The long and winding road . . .")

Contact Troy Wolverton at (408) 920-5021 or twolverton@mercurynews.com.

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Copyright (c) 2007, San Jose Mercury News, Calif.

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