Read the full judgment

The Beatles were invited to join the iTunes music revolution today after losing their trademark battle with Apple Computer.

Apple Corps, the company set up by the Fab Four in 1968, had wanted multi-million pound damages from Apple Computer for using the apple logo in its iTunes Music Store, which has sold a billion tracks since its launch three years ago but has no Beatles songs for sale.

The Beatles record label had argued that Apple Corps had argued that the computer-maker's move into music sales via its iPod MP3 player and iTunes had breached a 1991 agreement between the two setting out a strict "field of use" over the apple mark and logo.

But in a High Court ruling that surprised many legal observers, Mr Justice Mann ruled that Apple Computer used the apple logo in association with the online store and not the music it sold, and therefore did not breach the agreement.

"I conclude that the use of the apple logo ... does not suggest a relevant connection with the creative work," he said in his written judgment.

"I think that the use of the apple logo is a fair and reasonable use of the mark in connection with the service, which does not go further and unfairly or unreasonably suggest an additional association with the creative works themselves."

Steve Jobs, the Apple co-founder who heads the US computer giant, said: "We are glad to put this disagreement behind us. We have always loved the Beatles, and hopefully we can now work together to get them on the iTunes Music Store."

Apple Corps, which is still owned by Sir Paul McCartney, Ringo Starr and the widows of John Lennon and George Harrison, faces a legal bill of around £5 million after losing the case.

But the judge refused Apple Computer’s application for an immediate interim payment of £1.5 million pounds after giving Apple Corps leave to appeal - which the firm said that it would do.

Commenting on the judgment, Neil Aspinall, the Beatles’ first roadie who is now manager of Apple Corps, said: "With great respect to the trial judge we consider he has reached the wrong conclusion.

"We felt that during the course of the trial we clearly demonstrated just how extensively Apple Computer had broken the agreement. We will accordingly be filing an appeal and we have been advised by our legal team…that we have every prospect of reversing this decision on appeal."

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