Computer company beats Beatles' suit

Apple Computer can use its apple logo on the iTunes Music Store without infringing the trademark of Apple Corps Ltd.,a British judge ruled Monday.

Apple Corps, the record company owned by former Beatles Paul McCartney andRingo Starr, as well as John Lennon's widow Yoko Ono and the estate of George Harrison, had accused the California computer company of violating a 1991 deal.

That agreement, reached to resolve a trademark lawsuit brought by the music company, set out areas in which each company would be able to exclusively use their respective apple-shaped logos. Under the deal, Apple Computer was not to enter the music business.

Apple Corps argued that the iTunes Music Store, which uses the Apple Computer logo, violated that deal. The company, led by former Beatles road manager Neil Aspinall, sought to prevent Apple Computer from using its logo on iTunes, considered the world's leading music download service.

Judge Edward Mann ruled that the logo was used in association with the store, not the music, and didn't violate the terms 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."

Lawyers for Apple Computer had argued 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 stylized apple with a bite taken out.

"We are glad to put this disagreement behind us," Apple Computers CEO Steve Jobs said in a statement.

"We have always loved the Beatles, and hopefully we can now work together to get them on the iTunes Music Store," he said.

During the trial, Apple Corps revealed thatthe firm is preparing the band's catalogue to be sold online for the first time.

Any partnership will have to wait however, as Aspinall vowed to appeal, saying the judge had reached "the wrong conclusion."

"We felt that during the course of the trial we clearly demonstrated just how extensively Apple Computer had broken the agreement," he said.

The current case was the third lawsuit Apple Corps had filed against the computer company.

Apple Corpsfirst sued the computer company for trademark infringement in 1978. They settled in 1981.

Apple Corpssued again in 1989, claiming that the ability of Apple computers to play MIDI music files violated the previous settlement.The two companiessettled out of court in 1991 for a reported $26 million US.