Apple Records Sue Happy! Files Suit against Apple for iTunes

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Beatles Label Sues Apple iTunes in Trademark Suit
Fri September 12, 2003 01:11 PM ET
By Bernhard Warner, European Internet Correspondent
LONDON (Reuters) - The Beatles management company said on Friday it is seeking a court injunction against Apple Computers Inc., insisting the computer maker's iTunes online music store breaches the band's trademark.

Apple Corps., the company formed in 1968 by the Fab Four to manage its business interests and serve as the band's music label, issued a brief statement on Friday saying it had filed court papers in a London High Court in July seeking penalties and an injunction against the computer maker.

"Specifically, (the) complaint is made over the use by Apple Computer of the word "Apple" and apple logos in conjunction with its new application for downloading pre-recorded music from the Internet," the London-based company said in a statement.

The company did not elaborate on the penalties it is seeking, but said the computer maker violated a 1991 agreement specifying that it could use the Apple trademark for computer products only.

Apple Computers was not immediately available for comment.

Launched in April, Apple's iTunes has given hope to weary music executives looking for an alternative to free file-sharing services such as Kazaa and Morpheus which have created a black market of sorts for free songs on the Internet.

Music executives blame file-sharing and CD-burning for contributing to a three-year decline in global recorded music sales. The Recording Industry Association of America (RIAA) this week announced it has sued 261 song swappers, a tactic that has drawn criticism from consumer groups.

Apple iTunes has been one of the few bright spots in the industry's attempt to woo back computer-savvy consumers.

Earlier this week, the company said it had sold 10 million song downloads in its first four months. iTunes is available only in North America to Apple computer users, a small sliver of the total personal computer market.

Apple has secured licenses from each of the five major music labels to sell music downloads, including EMI, home to The Beatles catalog. The Beatles, however, have not made their music available to iTunes or any other industry-backed service.