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The Wall Street Journal is reporting that Apple (the company in charge of the Beatles’ catalog) and Apple (the computer company that can’t seem to make a decent battery) have settled their trademark dispute:
Under a new deal that replaces one reached in 1991, Apple will own all of the trademarks related to “Apple” and license some of those back to Apple Corps Ltd., the Beatles’ record label. The trademark lawsuit between the companies will be withdrawn. Terms of the settlement are confidential.
“We love the Beatles, and it has been painful being at odds with them over these trademarks,” said Apple Chief Executive Steve Jobs in a prepared 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.”
Jobs added, “This has nothing to do whatsoever with the fact that we desperately want to put Rubber Soul on the iTunes store before the introduction of the iPhone. Nothing! Now excuse me while I give Yoko a hot-stone massage.”
Apple, Beatles Reach Deal Over Use of Trademark [WSJ]
Earlier: More MacWorld: Will The iTunes Store And The Beatles Finally Come Together?
Man, the Jobs reality-distortion field strikes again. How the hell did Jobs’s lawyers convince the Beatles to let Jobs have the trademark outright and license it back to them?
I’d love an explanation from someone who understands trademarks better than I, as to why the Fabs would agree to this. (Less overhead? Settlement on lawyers’ fees?) It’s kind of mind-blowing to me.
Wild guesses:
1. Cash. Jobs likely paid a hefty sum to acquire the trademark, and I’d bet that Apple Corps is receiving a paid-up, royalty-free license to use the APPLE marks worldwide for as long as it cares to continue pressing records. The quality-control aspects of the license should be pretty minimal under the circumstances.
2. Cash. Aside from the Beatles releases from 1968-70, the Apple Corps catalog isn’t much to look at commercially, barring a Badfinger revival by “yacht rock” aficionados. (Rubber Soul is from 1965 and therefore not part of the Apple Corps catalog.) To the extent that Ringo Starr and Neil Aspinall want to embark on new projects, or Sir Paul wants to pay for a certain high-profile divorce, this deal should represent a huge shot in the arm.
3. Cash. By settling the dispute once and for all, Apple Corps is saving itself from future fruitless attempts to convince the world that it holds exclusive rights in the APPLE name for music-related products and services. Without the settlement and sale/license, Apple Corps would have to continue litigating to preserve its dwindling trademark rights. Since Apple Corps had effectively lost its trademark in the court of public opinion, this outcome just synchronizes law and reality for a change.
Wow, I never thought that Jobs will be so high with Apple!