Apple vs. Apple

I think, maybe, I may go out and buy a few dozen Beatles albums - because they're my new heroes!

The Beatles' corporate face, Apple Corps., has done the unthinkable and is suing Apple Computers over the entire iTunes franchise. Apple Corps, which of course is involved in the music industry, had first sued Apple Computer back in 1978 for trademark infringement. They settled in 1981 for $80,000 being paid to Apple Corps, and - here's the rub, Horatio - Apple Computer agreed to stay out of the music industry!

Hmm.

In 1989, Apple Corp sued AGAIN, claiming Apple Computer violated the settlement agreement, and again (in 1991) a settlement was reached for $26.5 million.

Round three. In 2003, Apple Corps YET AGAIN sued Apple Computer over it's introduction of the iTunes software, which Apple Corps believes was a violation of the previous agreement by Apple not to distribute music. The trial date was set for March 27th of 2006.

Today.

The looming question up for courtroom debate is whether iTunes Music Store sells physical music materials, such as CDs.

There is lots of speculation about the outcome of this latest dispute. Some analysts believe it may bring the biggest settlement anywhere in legal history outside of a class action suit. After all, Apple has tied its future to the iPod and tightly bundled it with iTunes. Some predict the suit could result in Apple Corps becoming a major share holder in Apple Computer, possibly with Paul McCartney as a board member.

Another possibility is that the court will order Apple Computer to remove its trademark from iTunes and iPods and set up a new company to sell them. Apple is already preparing for that.

What gets me is...based on previous history, you'd think someone at Apple Computer would have said "hey, maybe this is gonna get us in trouble?"

I'm betting Jobs looked at the numbers and said "Oh screw that, we'll just pay them a good $100million and walk away like nothing happened!"

Or maybe they'll have to start putting little yellow submarines on those devices.