a negotiation story that was about to be lost

In the origin of the name Apple, a company we currently know simply as “Apple” and previously “Apple Computers”, we find many anecdotes. One of the few confirmed by its protagonists is that Steve Jobs chose it to appear before Atari in the telephone directories. However, there was significant conflict over the choice of this name and it was not specifically with Atari.

Apple and the Beatles were at odds for decades. Or rather, this group’s label, Apple Records. If you did not know this now legendary company, we will not need to tell you what is the reason for the conflict with the company founded by Steve Jobs, Steve Wozniak and Ronald Wayne. Regardless, it’s interesting to see how this war that could have prevented Apple from being Apple was fueled. Literally.

Yes, Apple Records predates Apple

Both companies on the block. And in both cases, it sucks

The original Apple company is not the one we know and dedicate our content to on Applesfera. He was in 1967, when Apple Corp was created. This happened across the pond for the apple we now know. The Beatles were the owners, creating this company for the entire management of the famous Liverpool group.

A year later, in 1968, Apple Records was born from there as a label and thus protect the great successes that would come from the group formed by John Lennon, Paul McCartney, George Harrison and Ringo Starr. So, in the absence of one Apple, there were two at the end of the 70s. The third in the running, our Apple, would take a few more years to arrive.

Officially, Apple Computer was born on April 1, 1976, retaining this name until the 2000s, when it was decided to shorten it simply to “Apple”, thus removing the reference to computers from the equation. After all, with the iPod and iPhone, the company was already much more than a company intended to sell computers.

The Beatles’ Apple sued Jobs’ Apple in 1978

Just two years after its founding, Apple Computer was beginning to be a well-known company. Not generally in the same way as today. In fact, it wasn’t made public until 1980. However, it was relevant enough that Apple Corp, owner of Apple Records and The Beatles, responded with legal action.

The music company demanded a $1 million fine based on what it had considered a violation of trademark rights who carried their name not only in the UK, but across much of the world. And yes, including in the United States, a country in which Apple technology was beginning to take its first steps.

After several attempts, The case was closed by mutual agreement, even if it was not free for Apple (“our” Apple). The company founded by Jobs and company had to pay an amount of money that was not initially disclosed and speculation was in the tens or even hundreds of millions of dollars. Over the years, it was revealed that the amount was far from being equal to a million, since the transaction was concluded at $80,000.

Except that, Apple Computer had to promise not to get involved in the music industry. In this way, it was understood that even if there were two companies on the block, they would be well differentiated. One would be a musical fruit, the other would be a technological fruit. This was the case for many years, although hostilities between the two countries did not cease.

There has been no peace between companies for decades

The war between Apple and Apple Records has lasted too long. And Steve Jobs was an avowed Beatles fan, so much so that among his favorite albums were two by the British group. However, for professional purposes, he defended his apple brand tooth and nail.

And in 1986, six years after this agreement between the companies, A new lawsuit has arrived at the expense of the Apple II. This legendary second Apple computer allowed you to record and edit audio. And it is true that it was not like putting a record on the market and that even this function was not the great selling point of the Apple II, but that, in the eyes of Apple Records, skipped this agreement signed in 1980.

Again, another defeat for Jobs’ Apple and this time he was a millionaire. There were no valid promises, as they had to pay $26.5 million to the Beatles’ record company. Best of all (or worse, depending on which company you’re looking at) is that the real intrusion of the iPod, iTunes and Apple into the music industry was yet to come.

Apple Computer changed the music industry and Apple Records didn’t like it

If with a “simple” computer capable of recording audio, Apple Corp and Apple Record were unhappy, how could they not be angry if Apple released a music player that would ultimately sink the record companies? This was achieved by the iPod in 2001 and continued by iTunes in 2003.

Steve Jobs introduces the original iPod in 2001

We already know a lot about the history of Apple’s first player and how it was the music industry’s first big push into the digital realm and ultimately led to platforms like Apple Music, Spotify or TIDAL. In the first iTunes of the first iPods, you could download hundreds of songs for 0.99 dollars/dollars. There were hardly any artists or bands whose tracks weren’t available there, but there were some. And one absence attracted more attention than another. Indeed, that of the Beatles.

The Liverpool band was banned from iTunes for years and not to the liking of Steve Jobs. As we said before, I was another fan of his works. However, threats of complaints from Apple Corp led them to make the decision that the group’s songs would not feature on their platform. Which indirectly or directly led to Beatles music being the most illegally downloaded.

30 years later, the Beatles and Apple shook hands

And finally, the Beatles have arrived on iTunes

In 2007, 29 years had passed since Apple Corp first denounced Apple Computer. However, that’s when, much to the relief of iTunes consumers and Beatles fans, both companies They sealed a historic agreement thanks to which the albums of the Liverpool group could be marketed on iTunes.

It was almost an open secret, given that some meetings and other approaches between Steve Jobs and Paul McCartney themselves had been leaked. However, it didn’t become official until February 2007. “We love the Beatles and it was very difficult to fight with them because of the trademarks,” Jobs said in a statement.

Since then, There have been no disputes of any kind between the companies. The band is still available on Apple Music and the label is also continuing its work. So much so that the new unreleased song released by the Beatles last year, entitled “Now and Then” is also present on the platform from day one.

However, it is a good reminder of how history could have changed. And not just from Apple Computer itself (now Apple), but from the tech industry in general. Because yes, a company is not just a logo or a name, but of course if there is a company that identifies so widely with these two elements, it is Apple. Our apple. And we are particularly happy, because we should have seen differently what combination of names we should have invented for Applesfera.

Cover image | Generated with DALL-E 3 and Photoshop

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