James Delahunty
5 Apr 2006 9:30
Apple Computer Inc. has defended its use of the Apple logo on iTunes advertisements and on the iTunes store itself. Apple Corps claims that Apple Computer is in violation of a 1991 agreement that limited how the company could use an Apple logo in the music business. Apple Corps is owned by former Beatles stars Sir Paul McCartney and Ringo Starr and the widows of John Lennon and George Harrison. The label is seeking unspecified damages and wants the logo dropped from iTunes.
However, Apple Computer fought back against the claim saying that under the 1991 agreement, it is allowed to use the logo to indicate "the source or origin of the hardware". Judgment in the case has been reserved and is expected after thew Easter holiday. "We say that Apple Computer has been using the Apple mark in connection with musical content," said Geoffrey Vos, a lawyer for Apple Corps. "It uses those marks on its music store site at the point of sale of the music content. It signs artists on its site in just the way a record company would."
However, Anthony Grabiner, acting for Apple Computer, stressed that the logo is not used to promote the music tracks, but the iTunes store and its download services. The company claims that it sells digital transfers and not physical music products and that means it is not breaching the 1991 agreement. "Apple Computer has the exclusive right to use the apple mark [in iTunes advertisements] if used to indicate the source or origin of the hardware and downloading services mentioned in the advert" said Mr Grabiner.
A judgment will depend on how the 1991 agreement is interpreted. Apple Computer Inc. argues that the "distribution of digital entertainment content" was permitted under the agreement but Apple Corps disagrees and Mr Vos claims that iTunes "was flatly contradictory to the provisions of the agreement."
Source:
BBC News