The expansion beyond the regional cinemas is what triggers this lawsuit. There are probably a dozen “Bob’s Burgers” scattered around different states all different but all using the same name. If Bob’s Big Boy tried to expand in a state where one existed they would likely need to use a different name in that state (same as America’s Tire Company replacing Discount Tire Company in some states).
Apple operates nationally. So they hold the trademark on Apple related to movies at the National level but anybody preceding them at a local level can continue to operate locally. When Apple Cinemas expanded to California they triggered this. Further, Apple likely still holds priority for selling movies on iTunes before 2013 but likely never asserted the trademark back then because they were unaware of Apple Cinemas operations. Once you become aware, you have to defend your trademark or lose it.
It is very much why “App Store” failed as a trademark. It was never defended at first and Steve Jobs even referred to “other people’s app stores”. You cannot retroactively defend a trademark. Also. “App Store” was a stupid trademark to try to assert retroactively because it is like “Grocery Store”. Apple needed to assert that and register it when the word “App” replaced “Application” and “Program” (looking at Windows there). But it was too late for Apple on that one.
NOTE: Apple Records had priority in music and received or still receives money for Apple Computer for using the Apple name for Apple Music and maybe even as far back as opening the iTunes Store.
