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Hot Apple on Apple Action
by - September 20th, 2004
The topic that everyone seems to be talking about this week is the legal proceedings between Apple Corps and Apple Computer. I suppose I might as well throw in my two cents. Let me make this clear, however: I have no idea what is going to happen between these two companies. That is what makes me different than every other so-called pundit on the topic. At least I will admit what I am saying is pure, unadulterated speculation.
Some of the predictions I have read on the Mac web are so outlandish that I want to go to the homes of the people who wrote them and kick them right in the crotch. No subtlety, no "revenge is a dish best served cold" for me. No way. I'll just go to their house, ring the bell, confirm their identity, take three steps back, get a good start and swing away. As they are sailing backward, they might hear me say, "I read that article you wrote! I want my three minutes back!"
Paul McCartney will not be joining Apple's board of directors. Period. Apple Corps will not be taking ownership of a portion of Apple. Period. I should take an anger management class. Period.
There is a good chance that Apple Computer will have to pay Apple Corps a handsome sum, even though I think that is ridiculous. No reasonable man is going to confuse Apple Corps, the Beatles' record label and experimental business from the drug-laced sixties, with Apple Computer, the creator of the personal computer and pioneer of the new frontier of legal music downloads.
But the letter of the law has a way of biting one in the ass sometimes. If Apple Computer has agreed to stay out of the music biz to avoid conflict with Apple Corps, then the ridiculous may happen.
Let me say one thing about the Beatles. I consider them to be the single most influential rock group of all time. The Beatles were musical geniuses.
However, their business acumen was another thing. The Beatles created Apple Corps as their own label, and the label for the musical talents they hoped to discover. (Remember Badfinger? Don't worry, most people don't.) They opened boutiques, and dabbled in various artistic endeavors, most of which were embarrassing failures. Apple Corps, as managed by The Beatles, was a debacle that bled money, created conflict within the group, and took the Beatles' focus away from the music that had driven them for the better part of a decade.
Yoko Ono did not break up The Beatles, for the record. Apple Corps did.
Now Apple Corps is in the business of releasing Beatles compilations, and studio tapes of rough cuts of our favorite songs so we can hear what "Maxwell's Silver Hammer" sounded like before they got it right.
If I was in that boat, I would sue the pants off of anyone that I thought I could make a buck off of too.
But The Beatles were arguably the greatest pop culture development of the twentieth century. I feel that way, and apparently so does Steve Jobs. So much so, that he named his fledgling company Apple Computer as a tribute to the greatest band of all time. Oops.
We all know Steve Jobs is a business wiz. He has a tendency to be able to make lemonade out of lemons. So, if I were Steve Jobs and it became apparent that I was going to have to pay out a lot of bucks, I would at least try to get something for it.
First, I would offer, as a service to Apple Corps, to produce an ad campaign that would explain the differences between the two companies. To further educate the public about the differences between the two Apples, I would offer to double the proposed settlement if Apple Corps would make its library exclusively available on the iTunes Music Store.
A TV spot could go something like this: (I couldn't decide who would be a good actor for the voiceover, but I kept hearing Patrick Stewart.)
(fade in to a collage of Beatles pics crossfading; use Ken Burns effect)
voiceover, with stirring music:
In the dissent and conflict of the turbulent sixties, four young men spoke with one voice that rose above the din. Their music, their magnetic personalities, and their irreverent wit left an impression on the world that lasts to this day. The Beatles would become the most influential band of all time. At the peak of their incredible popularity, they created the most influential record label of all time: Apple Corps. Almost forty years later, Apple Corps is still releasing number one records by The Beatles.
(fade to black)
(fade in to a collage of early Jobs and Woz pics crossfading; use Ken Burns effect)
A decade later, one of the most important technology companies of the information age was founded in a garage in California. It introduced the world to the personal computer. In a tribute to their heroes, the young business partners named their tiny startup after the Beatles' record label. On that fateful day, Apple Computer was born.
(fade to black)
Today, destiny brings the two Apples together.
(as the two logos appear together on screen, a Beatles song begins to play. Maybe "Come Together", maybe "Two of Us")
Apple Corps, the most influential record company of all time, is making its entire library available for download exclusively on the most influential music store of all time: Apple's iTunes Music Store.
See what the fuss is about.
(fade to black; end)
Anyhoo, that's how I would do it.
Think they would fall for it?
is an Idiot. He is the co-founder of IWS Interactive, a New York (and now Houston) based development company for Macintosh. Now he spends his time writing about, developing for, and getting clients to buy Macs. Oh, yeah, and he recently had a kid. So his days are filled with taking care of little Jack, then playing with his Mac. He wouldn't have it any other way.
You can send your comments directly to Gary, or you can also post your comments below.
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Observer Comments
Mon Sep 20, 2004 12:58 pm Subject: No story here, move along
This is all a crock of $#!% cooked up by Variety magazine and spread all over the media. They own up to the fact that their article is based on rumour, "word among the legal community" and an uninvolved lawyer are their sources.
Apple Computer is specifically entitled to: "have the exclusive right to use or authorise others to use the Apple Computer Marks on or in connection with goods or services within subsection 1.2 (such as software, hardware or broadcasting services) used to reproduce, run, play or otherwise deliver such content provided it shall not use or authorise others to use the Apple Computer Marks on or in connection with physical media delivering pre-recorded content within subsection 1.3(i) or (ii) (such as a compact disc of the Rolling Stones music)."
http://www.courtservice.gov.uk/judgmentsfiles/j2468/apple-v-apple.htm
A couple of arguments Apple Corps could make are either Apple Computer is de facto changing their name to Apple or that digital downloads are the modern day equivalent of physical media, otherwise I can't see they have a case.
What could come out of a renegotiation (amongst many other ideas already expounded) is that Apple could distribute physical CDs, an obvious enhancement to iTMS that they have not been able to do.
Paul McCartney was interviewed last year after doing a concert in Birmingham, he was asked why he still did concerts, he replied it is for the money. Most stars continue performing for the buzz of playing live, others genuinely want to spread their music and actually perform to real live people. Many stars give up playing live because the extreme grief of touring is not offset by the buzz of performing. I don't criticise people for earning an honest living but that Paul says he plays live for the money seems rather disingenuous. He doesn't need the money, maybe it's that he's greedy.
Mon Sep 20, 2004 1:12 pm Subject: Where are the damages?
Apple Corps will have to show that they have been damaged in order to ask a court for a lot of money? How has Apple damaged them? A rather embarrassing question that Apple Corps will not want asked in public, especially as they will have to produce their accounting records to prove damages.
Mon Sep 20, 2004 1:53 pm Subject: Good one, bryson
-Badfinger (originally "the Ivys") had four hit singles, "Come and Get It,""Day After Day,""Baby Blue," and "No Matter What" as well as several other classic songs. I would hardly designate them as obscure. Alan Lomax, maybe. (Other early Apple signees included James Taylor, and a play was made for the BeeGees.)
-Many things led to The Beatles break-up. Legal representation (Klein versus Eastman), the death of Brian Epstein, the lack of touring, egos, solo career desires, Lennon's political involvement, and other significant factors were all bigger contributors to the break-up than the Apple Corps fiascoes.
-I may be wrong, but I think Steve Jobs denied the Beatles connection regarding the Apple name. He may have been backpeddling at the time, though.
-I'd personally LOVE to see an Apple/Beatles union, but I'll not hold my breath.
Sigh.
Gary, you just contributed to the very thing that got you angry.
Let see, you admit you know nothing about this topic (good start!) but then go on to make a number of statements about what will or will not happen.
Of all the statements, the one that got me to write this post was "there is a good chance that Apple will have to pay Apple Corps a hefty sum." Really? You read the complete agreement between the two companies? You read the detailed court filings on the case? You consulted an extpert on trademark law who knows something about his case?
Mon Sep 20, 2004 4:00 pm Subject: Re: Same pundits, Different day
Mon Sep 20, 2004 6:12 pm Subject: if you read slowly.....
QuoteGuest wrote:
Sigh.
Gary, you just contributed to the very thing that got you angry.
Let see, you admit you know nothing about this topic (good start!) but then go on to make a number of statements about what will or will not happen.
Of all the statements, the one that got me to write this post was "there is a good chance that Apple will have to pay Apple Corps a hefty sum." Really? You read the complete agreement between the two companies? You read the detailed court filings on the case? You consulted an extpert on trademark law who knows something about his case?
Actually, I say that there is a good chance that Apple will have to pay Apple not because of anything I know of the current situation, but rather on precendent.
Twice before, when Apple increased the multimedia capabilities of its computers, Apple had to pay a settlement to Apple Corps. I am willing to bet that we will see some similar type of resolution to the current row.
Clearly, I am not privy to the information you mentioned. But, didn't I say that at the beginning of the piece? The phrase "pure, unadulterated speculation" should have made that clear.
Sigh.
Gary
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