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3/30/2006
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iPod Is Allowed Under Previous Pact With Record Company: Apple

Apple Computer says its agreement with the music company doesn't prohibit data transfers, so iTunes is allowed.

Apple Computer Inc. defended itself in a London court Thursday, saying it did not bite into the music company's territory covered by a 1991 agreement.

The computer-maker launched its defense in the second day of a trial involving two companies, which share the word "Apple" and similar logos. Apple Computer said its agreement does not prohibit data transfers.

The music company, formed by The Beatles, is suing the computer company for the third time in trademark-related suits. It withdrew the first two in exchange for cash settlements estimated at over $26 million. As part of the settlement, the companies drew a line in the sand for their prospective businesses and markets.

Now the music company, Apple Corps, claims the computer company crossed the line by distributing and selling songs through iTunes, which uses the apple logo. iPods are sold in Apple Stores, which display a monochromatic, bitten apple logo. Apple Corps, with its shiny green Granny logo, is trying to stop the sales and recoup damages.

The trial is expected to continue next week.

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