The Beatles Vs. iTunes Lawsuit Will Be Fought In The U.K.

Apple Computer founder Steve Jobs' decision to pay tribute to The Beatles has turned out to be a legal pain in the ass.

After it was thought that years of court battles were behind them, The Beatles' record company, Apple Corps Ltd., announced last year they were suing Apple Computer Inc., shortly after the computer giant launched its iTunes Music Store.

The record label says that the launch of iTunes violates an agreement the two companies made that says Apple Computer would not get involved in the music industry.

Today (April 7), a judge announced that the trial between the two Apple entities would take place in a British court, because English law governed their original trademark agreement and the trial would be longer and more costly in an American court.

Legal battles between the two multi-million dollar companies began in 1981 over the use of the Apple name. The lawsuit was filed four years after Apple Computer was founded by Jobs, who admits that he picked the name as a tribute to The Beatles.

That trial ended after the computer company paid the record label an undisclosed amount to use the name for computer products only.

A decade later, the people of Apple Corps - which is currently owned by surviving Beatles Paul McCartney and Ringo Starr as well as John Lennon' widow, Yoko Ono and the estate of George Harrison - sued Apple Computer again, this time for putting their name on music-synthesizing products.

That case was settled out of court with Apple again paying an undisclosed amount, although it is known that Apple at the time was offering $34 million.

More importantly, Apple Computer agreed to not to get involved in the music business, which is why Apple Corp has reared it's head once again. The Apple record label is seeking a court order to enforce the 1991 agreement as well as financial damages.

An Apple Computer spokesperson said that the two parties have a different interpretation of the 1991 agreement, which seems to be the root of the legal dilemma.

Since it was launched in April of last year, Apple iTunes has sold over 10 million songs at 99 cents each. iTunes is an important element of the company's attempt to market their computers as complete digital entertainment units.

Five major record companies also have a hand in iTunes. In exchange for making their library of music available on the iTunes Music Store, the label collects 65 cents for every download.

Obviously, Apple Corp has not authorized the use of their music, so you won't find any Beatles tracks of iTunes, regardless of Steve Jobs' bittersweet love for the Fab Four.