Apple Corps
For nearly 30 years Apple Corps (The Beatles-founded record label and holding company) and Apple Inc. (then Apple Computer) litigated a dispute involving the use of the name "Apple" as a trademark and its association with music. In 1978, Apple Corps filed suit against Apple Computer for trademark infringement and the parties settled in 1981 with Apple Computer paying an undisclosed amount to Apple Corps, later revealed to be $80,000. A primary condition of the settlement was that Apple Computer agreed to stay out of the music business. In 1991, after Apple introduced the Apple IIgs with an Ensoniq music synthesizer chip, Apple Corps alleged the product to be in violation of the terms of their settlement. The parties then reached another settlement agreement and Apple paid Apple Corps around $26.5 million, with Apple agreeing it would not package, sell, or distribute physical music materials.