Should Apple buy Apple

[sspitsbergen]

There is an article on CNN.com about The Beatles in negotiations to distribute their music in an online service. http://www.cnn.com/2004/SHOWBIZ/Music/06/09/music.beatles.reut/index.html

The article mentions Apple Computer's legal problems with Apple Corp. The question I pose for discussion - If Apple Corp. still owns the rights to the Beatles songs (and the other bands they put out, I want to say Bad Company and James Taylor, but could be wrong on that), would it make since for Apple Computer to buy them? It would kill a major lawsuit, guarantee a huge revenue stream (if the songs are not owned by Northern Songs Ltd, which Michael Jackson bought, I think) and be a major blow to all the other online music sites.

Any opinions (or factual corrections)?

biggles

[MongoTheGeek]

There is an article on CNN.com about The Beatles in negotiations to distribute their music in an online service. http://www.cnn.com/2004/SHOWBIZ/Music/06/09/music.beatles.reut/index.html

The article mentions Apple Computer's legal problems with Apple Corp. The question I pose for discussion - If Apple Corp. still owns the rights to the Beatles songs (and the other bands they put out, I want to say Bad Company and James Taylor, but could be wrong on that), would it make since for Apple Computer to buy them? It would kill a major lawsuit, guarantee a huge revenue stream (if the songs are not owned by Northern Songs Ltd, which Michael Jackson bought, I think) and be a major blow to all the other online music sites.

Any opinions (or factual corrections)?

biggles

I seem to remember discussion on this a few months ago. Apple Corps is now in essence just a holding company to shake down Apple Comp. A buyout would be great for Apple but won't happen at a reasonable price until apple does something or threatens something Armegeddonish. It would be cool for Apple to Buy out the music label and start releasing records under it (and then selling them fantastically discounted on iTMS.)

[PlaceofDis]

buying Apple Corps would be GREAT for Apple Computer, but as mentioned the price wouldnt even be worth it, it would take Apple Computer years to recoup the losses and finally turn a profit off such a buyout, but it would be good publicity and put Apple in a very good position, it would end the lawsuit, allow apple to be the only online store to offer that music AND allow them to have artists sign up to that label directly, thus removing the need to negotiate with the record labels as much, but it wont happen, not for a loooong time at least

[mymemory]

it would take Apple Computer years to recoup the losses and finally turn a profit off such a buyout

Not if you can get music from the Beatles exclusively trough iTunes Music Store.

But again, it is not a realistic scenario.

[G5orbust]

Im pretty sure its against the law to buy out a company who has filed suit against you during the time that the suit is still in court. If that could happen big companies would infringe copyrights all the time and just buy up the companies they belonged to.

[MongoTheGeek]

Im pretty sure its against the law to buy out a company who has filed suit against you during the time that the suit is still in court. If that could happen big companies would infringe copyrights all the time and just buy up the companies they belonged to.

I liked the razor so much I bought the company...

What if it were 2 transactions. I pay $500,000 for the copyright infringement and then $1,000,000 for the company, all of its intellectual property but none of the cash which would then be distributed to the owners? How is that different than paying $1,500,000 for the whole company up front? Its not like the sale is being coerced. If anything you could almost make the argument that the infringer was being blackmailed into buying the company.

Should it be illegal to buy a cow because I like the occasional glass of milk?

[Foxer]

Im pretty sure its against the law to buy out a company who has filed suit against you during the time that the suit is still in court. If that could happen big companies would infringe copyrights all the time and just buy up the companies they belonged to.

Not true. Think of the converse of your hypothetical. Small companies could sue larger ones simply to avoid a hostile takeover. To buy another company, you need to convince someone that they want to be bought. In publically held company, you must convince a majortiy of the shareholders. In a privately-held company (like Apple Corps), you must convince the owners, and I think it unlikely that Apple Comp. has enough to convince Paul, Ringo and anyone else with their hands in the pie to sell.