Beatles lose against Apple (UPDATE)

Apple Corps, owned by the Beatles, has lost the suit it had filed against Apple Computer for the use of the brand "Apple" in its music service iTunes.

Lawyers for Apple Computer had argued that it was conducting its business legally and that music lovers are smart enough to tell the difference between the logos. Apple Corps uses a shiny green apple as its logo, while Apple Computer has a cartoon-like apple with a neat bite taken out.

Apple Corps will have to pay $2.8 million to Apple Computer for legal costs. The Beatles' company will also have to pay a similar bill for its own legal costs.

UPDATE: Apple Corps will appeal (complete judgement PDF available here)