Apple Computer can go into the recorded music business in any way they want. What they cannot do is use the Apple (trade)mark to do it.

They are in the music business.

[Apple] Computer was promoting a store at which to buy music, and more particularly, Computer's musical recordings — permanent downloads — with special characteristics. No objective onlooker could think otherwise.

The deal says, you stick to computers and we'll stick to music.

The deal says, you stick to computers and we'll stick to music. This is a simple case. They advertise exclusive music for sale with the Apple logo. They are selling music.

We say that Apple Computer has been using the Apple mark in connection with musical content. It uses those marks on its music store site at the point of sale of the music content ... it signs artists on its site in just the way a record company would.