Core Of The Issue

A few weeks back I wrote an article about Budweiser Budvar v Anheuser Busch and how protecting your brand is vital. In that case, the two companies agreed that the other could use the name Budweiser in a geographical agreement. It didn’t work because both parties decided they wanted to broaden the reach of their products. The result has been lengthy litigation all over the world. So has everyone learned their lessons? Erm…no!

The last couple of weeks has seen the Battle of the Apples. In the green corner is Apple Corps – British record label set up by the Beatles and still owned by Paul, Ringo and the widows of John and George. In the multi-coloured corner is Apple Computer – famous initially for making the Macintosh, favoured apparatus of the graphic designer and something of an iconic brand. So what’s the problem?

Both Apples were formed in the late 60s and both were associated with innovation and links to general peace and understanding. In 1991, the two firms agreed not to enter into the other’s field of business. That would have seemed at the time perfectly plausible – why would Ringo et al want to build computers and why would Apple want to make records? However a problem arose between then and now with the invention of digital download music – big business over the new-fangled Interweb.

Back in 1991, the internet was merely a twinkle in Bill Gates’ bespectacled eyes and the concept of a single getting to number one without ever actually selling a record, tape or CD was incomprehensible. However, Apple Computer is now probably best know for the iPod and its associated software iTunes. Both products lead the market by some distance and telltale white earphones are as much a part of youth culture as bling and cheap cider.

Apple Corps is objecting to the fact that Apple has clearly infringed its area of business – the music industry. They claim that the use of the Apple logo on iTunes infringes their trademark agreement and leads to confusion – the key factor in any trademark dispute.

Any lesson to be learned from this? Just one – in case the Budweiser War hasn’t demonstrated it yet. If you have a brand, look after it and definitely don’t make any agreements with conflicting brands that could come back to haunt you.

Now the cynic in me just says “So what? Who cares?” Unfortunately, Apple Corps don’t see it like that and want the Apple logo removing from anything music related. The battle will go on and, in my opinion, the only people to benefit will be the lawyers. Will Apple Corp really be better off if Apple Computers doesn’t display their logo on iTunes? I doubt it…

Here’s solution for both sides to consider – take a little memory trip back to 1967, stick some flowers in your hair, tune in to some Janis Joplin and just chill out guys! 

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