Apple Computer wins trademark dispute vs Beatles (Reuters)

LONDON (Reuters) - Apple Computer won its courtroom battleagainst the Beatles on Monday when a judge ruled the company'siTunes Music Store did not infringe on the trademark of AppleCorps, which represents the band's interests.

In a trial which included the playing of disco hit "LeFreak" in London's High Court, Apple Corps argued the computercompany had violated a 1991 trademark agreement by moving intothe music business.

Apple Computer, which has sold millions of iPods and morethan a billion song downloads, held that iTunes was primarily adata transmission service and permitted by the agreement.

The Beatles are high-profile holdouts from Internet musicservices like iTunes, but it emerged during the trial thatApple Corps is preparing the band's catalog to be sold onlinefor the first time, according to a submission by Neil Aspinall,managing director of Apple Corps and a former Beatles roadmanager.

"We are glad to put this disagreement behind us," AppleChief Executive Steve Jobs said. "We have always loved theBeatles, and hopefully we can now work together to get them onthe iTunes Music Store."

A spokeswoman for Apple Corps said that no decision hadbeen made on when the Beatles' songs would be available topurchase online.

Apple Corps -- owned by Paul McCartney, Ringo Starr, JohnLennon's widow Yoko Ono and the estate of George Harrison --has fought several courtroom battles with Apple Computer overtheir competing fruit-shaped logos.

A 1991 out-of-court settlement, which included a $26million payment by Apple Computer, set out areas in which eachparty would have exclusive use of their respective logos.

"I find no breach of the trademark agreement has beendemonstrated," Mr Justice Mann said in his judgment on Monday."The action therefore fails."

"I think the use of the apple logo is a fair and reasonableuse of the mark in connection with the service," Mann said,referring to a central argument of Apple Corps over the use ofthe Apple Computer logo within the iTunes Music Store.

Apple Corps said it would appeal the decision. AppleComputer was awarded court costs.

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