Apple’s settlement with Beatles could be ‘biggest settlement in legal history’

“Beatles fan Steve Jobs could lose a large bite of his Apple to his idols. Beatles’ company, Apple Corps., is involved in a legal battle with Jobs’ Apple Computer, claiming the hardware manufacturer is in breach of a 1991 agreement that that forbids it from using the trademark for any application ‘whose principle content is music.’ The two companies have been involved in a number of court battles over the years involving the use of the Apple trademark,” Gordon Masson reports for Variety.

“Word among the legal community is that an out of court settlement could be imminent and that it will massively dwarf the $26.5 million paid to the Fab Four’s company in 1991 in a row over trademark use,” Masson reports. “One lawyer told Daily Variety, ‘People are expecting this to be the biggest settlement anywhere in legal history, outside of a class action suit. The numbers could be mind boggling.'”

Full article here.

Related MacDailyNews articles:
The Beatles gearing up for a fight over Apple’s iTunes Music Store – June 03, 2003
The Beatles sue Apple Computer over iPod, iTunes – September 12, 2003
Sosumi: more on the Beatles’ lawsuit against Apple Computer, Inc. – September 12, 2003
Forbes: Apple vs. Apple; iTunes Music Store just might end up with exclusive Beatles deal – September 12, 2003
Apple and Apple issue statements regarding ‘Apple’ trademark lawsuit – September 12, 2003
Analyst: Apple vs. Apple trademark infringment suit just ‘a blip on the radar’ – September 13, 2003
Steve Jobs comments on Apple vs. Apple trademark dispute – September 17, 2003
Beatles’ Apple vs. Jobs’ Apple; 1991 agreement allows Mac maker ‘data transmission services, even music data’ – February 26, 2004
Fox News: Paul McCartney could end up owning Apple’s iTunes Music Store – August 14, 2004

52 Comments

  1. “Some speculation suggests the settlement could see Apple Corps. becoming a major shareholder in the computer company, with Paul McCartney maybe even becoming a board member.”

    Translation: Little cash will be exchanged. Apple Computer will give Apple Corps. stock as a payoff for the name issue, then they will spend Microsoft-level cash in order to land the exclusive rights to the Beatles catalog.

  2. …Let’s say a company decided to call themselves “Cerebrum”. Everything that exists would fall under that territory.

    Would that company then be gifted huge lawsuit settlement amounts from all companies following it?

    I’m not speaking up here to make the Beatles look bad, they made some good music and deserve some respect. Apple Computer needs to get thier respect and until they shed the Beatles from thier corporate image they are just disrespecting themselves…not too smart.
    Not to mention foolhardy :

    Let’s put our money towards something concrete…don’t piss it all away, once was enough.

    CT

  3. Who are the Beatles?

    Seriously — I wish we could start a protest boycott against the Beatles, but with 5% of the market I guess it wouldn’t make that big a difference.

    iTunes is offering a way to revive the Beatles tired, dated music for the band, and this is how they repay Apple? Ridiculous!

  4. I think EMR and SONY/Michael Jackson own the music.

    Apple Corps control the rights to Beatles merchandising, the lyrics, and the songs to some groups like Bad Finger.

    The big issue is the name Apple. A judge should throw out the copyright for the word Apple.

  5. We sometimes need to look at these things from an alternative perspective.

    Upside down, inside out, with rose colored glasses…

    Most companies can only see the financial picture. There’s so much more at stake here. That girl is not yours it’s not even close.

    Now check your hat at the door.

    CT

  6. I suppose the “Tree” Corporation would have a problem with the “Plant” Corporation…when the branched out into the lucrative fertilizer market. A Tree is a Plant and therefore can’t steal this business from the Plant Corporation.

    I don’t think we should be lulled into the boring details of this case. In other words…walk the plank Beatles.

    CT

  7. Michael Jackson owns the publishing rights to all but 4 Lennon/McCartney songs written by The Beatles.

    Maybe Apple Corps wants enough $$$ to buy the catalogue back from him?

    However, I would have to doubt SJ would allow things to get so far without some legal defence, unless he was prepared to settle all along.

    It will be interesting to see what happens.

  8. You know, I tend to agree that Apple’s got a big, big problem with Apple Computer. It isn’t an issue of who’s right and who’s wrong. Apple the record company has no risk in a lawsuit– Apple the Mac maker does.

    This op-ed piece brings it home. Apple’s gotta settle or else…

    http://www.mac360.com/index.php/mac360/more/the_dangerous_road_ahead_for_apple_computer/

    I’m also convinced that Apple has something else up it’s sleeve. As part of a settlement, I think you’ll see Beatles’ music on iTMS. Maybe iTMS will be owned by the Beatles.

  9. Hey guys — I hate to interrupt all the downer takes on this possible “deal,” but I think there’s a chance it could be a positive. Paul comes onto the Apple board of directors and brings with him the Beatles catalogue to iTMS. Everyone on this thread seems to be down on ’em, but for a lot of folks, the Beatles at iTMS is going to be a big draw. ApplC has $5 billion in cash reserves, or something like that, right? So give ’em some bucks and some ApplC stock, get the catalogue, and rock on. Steve J. is recovered enough to be negotiating this deal, right?

  10. ‘The biggest settlement anywhere in legal history, outside class action’? Sorry, that was the Pennzoil/Texaco lawsuit some years back, in which Texaco got whacked for $3 billion.

    The Beatles, everything they ever recorded, and the horse they rode in on are not worth $3 billion. No matter what happens, this case won’t be setting any records.

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