Apple(tm) v. Apple Update

Apple Computer has successfully defended itself in a British court against Apple Corps, the Beatles' music label. The trial judge found that the computer company's iTunes service, and the use of its logo in association with iTunes, did not violate a prior agreement between the two entities that prohibited Apple Computer from being involved in the recording industry. The judge found that iTunes was an "electronic shop" rather than a music publisher, and that the use of the logo did not lead to consumer confusion that the computer maker was involved in the creative process of music creation as well. Apple Corps is expected to appeal the ruling.

Notwithstanding the possibility of appeal, Steve Jobs immediately seized the opportunity to invite the Beatles to join the iTunes community. However, from a professional point of view, I wonder whether the 1991 agreement had an attorneys' fees provision that would award fees to the prevailing party. That sort of contractual provision often has a profound effect on the post-trial outcome of litigation. Of course, Apple Corps is undoubtedly well equipped to handle the millions of dollars in fees Apple Computer likely tallied up, but it would not surprise me if the two litigants came to a further agreement that resulted in the dismissal of the appeal. It would never be said publicly, but I would guess that the waiver of a right to fees under the Agreement in exchange for the dismissal would be part of the deal. All you need is love ... and some good leverage.