October 9, 1991: A court orders Apple to pay $26.5 million to Apple Corps, The Beatles’ record label and holding company, for trademark infringement. The end of this Beatles versus Apple lawsuit marks the second time Cupertino is forced to pay the English rock band.
The ruling comes a decade after Apple swore it would never get into the music business.
Apple vs. The Beatles: A long-running legal battle
The extended legal battles between Apple and ’60s pop superstars The Beatles came down to the word “apple,” which both entities used for business purposes.
The Beatles started using the name Apple Corps in 1968. According to Derek Taylor, the band’s publicist, Beatles’ songwriter and bass player Paul McCartney chose the name “Apple.” McCartney thought it represented the group’s maturing business strategy.
“What is the first thing that a child is taught when he begins to grow up?” McCartney reportedly said. “A is for Apple.”
Apple (the computer company) was incorporated nearly a decade later in 1977. At the time, it seemed like there was no risk that the two companies would cross over into each other’s intellectual space. Nonetheless, it didn’t take long after the launch of the Apple II computer in 1997 for Apple Corps to file a lawsuit protecting its name.
The companies settled the first Apple versus Beatles lawsuit in 1981, with Cupertino paying Apple Corps $80,000. The computer company also agreed to never enter the music business.
Macintosh and Apple II add MIDI and audio recording capabilities
Things stayed like that until 1986, when Apple added MIDI and audio recording to the Macintosh and Apple II product lines. In February 1989, Apple Corps sued again, claiming Cupertino violated the 1981 agreement. The music company singled out the Macintosh Plus, Macintosh SE and Macintosh II, as well as the Apple IIGS, AppleCD SC drive and Apple’s MIDI device.
The two sides eventually settled on October 9, 1991. This time, amusingly, The Beatles’ lawyers suggested Apple should change its name to “Banana” or “Peach” to avoid future dustups. Apple also signed an agreement stating that it could manufacture and sell devices that “reproduce, run, play or otherwise deliver such content” so long as this wasn’t on physical media.
Apple vs. The Beatles: All’s well that ends well
The two companies squared off again after Apple launched the iTunes Music Store in 2003. Fueled by the phenomenal success of the iPod, Apple’s digital storefront became the world’s biggest music retailer.
That led to one last legal battle between Apple and The Beatles. Hostilities between the two companies continued until a settlement in February 2007.
Today, that animosity is a thing of the past. Now you can listen to (or buy) The Beatles’ music in the Apple Music app.
Do you remember the legal battles that pitted Apple versus The Beatles’ Apple Corps? Leave your comments below.
