March 2004
Beatles send a poisoned apple to Macintosh
Some years ago the Beatles founded a London based music company called "Apple Corps" (perhaps based on the fact that "Ringo" in Japanese means "apple"). This company is now owned by Sir Paul McCartney, Ringo Starr and the widows of the remaining band members. When Apple Computers became prolific the two groups signed an agreement in 1991 in order that Apple could use the name and apple logo for computers, data processing and telecommunications whilst the Beatles were entitled to sole use of the name "Apple" for music purposes.
In recent months Apple Computers have launched "iMusic" the programme that enables Mac users to store their songs and transfer them to the gadget of the moment, the iPod. In the promotion of the product Apple have, naturally used both the Apple name and the logo as a brand extension of their computer based mark.
This alleged breach of the agreement by Apple Mac now looks to have landed the American company in court as the Beatles are apparently keen to pursue the matter as far as possible. Indeed it is rumoured that legal fees incurred by Apple have already exceeded the half million pound mark even before the matter has come to court. They should have come to Briffa for fixed fee work!
Apple recently attempted to have the case transferred to the US courts however the High Court has refused the request on the grounds that the original agreement was governed by UK law and there jurisdiction had effectively been agreed. Justice Mann, in charge of proceedings also felt that costs would be greatly increased if the matter were to be held in the US.
BRIFFA Comment:
When drafting any sort of an agreement where one party is based in a foreign jurisdiction it is always advisable to include clauses relating to the type of law and the nationality of courts that will hear any dispute which arises. This may then offer some consolation that in the result of a dispute you may at least be afforded some control over location and therefore likely costs and, to some extent, outcome of the case.
Coexistence agreements whereby two trade mark owners using similar marks agree the parameters of use in order that both might continue to operate under the same brand are not unusual. However they need to be very carefully drafted in order to avoid confusion or erosion of rights in future years. Briffa are experienced in the drafting of such documents and would be more than happy to assist with any branding or trade mark queries that you may have.