The Beatles' Apple Corps and Apple Inc. (formerly Apple Computer Inc.) today announced a settlement of a longstanding dispute between the two companies over the use of their name and logos,
reports Bloomberg.com and
BBC News.
The BBC reports that Apple Inc. will take full control of the Apple brand and license certain trademarks back to the Beatles' record company Apple Corps for continued use.
In other words, the Beatles have sold their Apple trademark to Apple Inc.
Here is the press release issued today by the two companies announcing the agreement:
Apple Inc. and The Beatles' Apple Corps Ltd Enter into New Agreement
CUPERTINO, California and LONDON—Apple® Inc. and The Beatles' company Apple Corps Ltd are pleased to announce the parties have entered into a new agreement concerning the use of the name "Apple" and apple logos which replaces their 1991 Agreement. Under this new agreement, Apple Inc will own all of the trademarks related to "Apple" and will license certain of those trademarks back to Apple Corps for their continued use. In addition, the ongoing trademark lawsuit between the companies will end, with each party bearing its own legal costs, and Apple Inc. will continue using its name and logos on iTunes®. The terms of settlement are confidential.
Commenting on the settlement, Steve Jobs, Apple's CEO said, "We love the Beatles, and it has been painful being at odds with them over these trademarks. 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."
Commenting on the settlement on behalf of the shareholders of Apple Corps, Neil Aspinall, manager of Apple Corps said, "It is great to put this dispute behind us and move on. The years ahead are going to be very exciting times for us. We wish Apple Inc. every success and look forward to many years of peaceful co-operation with them."
Apple Inc. spokeswoman Natalie Kerris declined to comment to Bloomberg on the settlement or to say whether a distribution agreement between the two to distribute the Beatles' online music is in the works. However, reports of such an agreement have been speculated for nearly a year, but hinged first on the settlement of the lawsuit.
Bloomberg reported that shares of Apple Computer fell 15 cents to $84.60 at 1:48 p.m. New York time in Nasdaq Stock Market trading.
Analysts have said that getting a distribution agreement for the Beatles' songs would be a huge boost to the online music industry.
Analysis: On the face of it, it's a big boost for the Beatles, but only if an online music agreement follows. The online music industry is desperate to have them. This agreement was almost unthinkable when it was first bandied about. It's interesting that in the time period the lawsuit has been working, the Beatles have gone from the single biggest attraction in rock to one with a lot of challengers. That, probably more than anything, had a lot to do with the settlement of the suit. It's also a gigantic boost for Steve Jobs, a huge Beatles fan himself. Indeed, the Cupertino headquaters of Apple Inc. has had a Beatles conference room for several years.
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. (Just added: Stan Williams' "Penny Lane Is In My Ears and In My Eyes" and Julian Lennon's "whaledreamers" DVD.)
