Apple sues Apple Cinemas over name as theater chain plans expansion

SAN FRANCISCO - Apple – the tech company – is suing a movie theater chain with the same name, citing trademark infringement. This comes after the theater moved into the Bay Area this summer. Apple – again the company based in Cupertino – believes customers are confused and think the tech giant is operating these cinemas. They're demanding Apple Cinemas change its name.

Trademark infringement dispute

Apple: it's one of the most recognized "brands" in the world, with the company putting its stamp on everything from your iPhone to the TV and movies that stream on it.

But now, they say another company is capitalizing on their good name. And so Apple has filed a trademark infringement lawsuit against Apple Cinemas.

"This is not a situation of Apple incorporated being a bully. They have a duty to enforce their trademarks. And what they're saying is Apple Cinema is creating confusion with consumers," says legal analyst Steven Clark.

The confusion is that Apple might be somehow affiliated with the theater chain. Until recently, Apple Cinemas operated primarily on the East Coast. This summer, it opened a San Francisco outpost at the old AMC Van Ness theater, with plans to expand here and nationwide.

Too similar? 

Movie-goers say the distinction between the companies isn't clear.

"I would definitely be confused. I mean Apple's a big company. I could definitely see why they'd want to protect their brand," said Marilyn McKinnon, as she prepared to go see a film.

"I would think so, because they are kind of in media. So when it's in a completely different industry, I don't think people get confused. But when there's overlap I could see thinking it was Apple," says Michelle McKinnon.

The cinema even has an Apple-shaped logo, perhaps adding to the similarities.

Apple Cinemas did not respond to our request for comment.

And in legal filings, Apple says the theater chain did not respond to a cease and desist letter.

So now the fight moves to the courts. And as legal experts point out, Apple has very deep pockets.

"So for Apple, they've said, look, we've warned you don't do this, and Apple Cinemas continued and so now this is going to play out in a very ugly and expensive fight in federal court," says Clark.

What's next:

Apple Cinemas' San Francisco location opened in July and has plans to open a Danville location by the end of the year or early next year. 

They have IMAX theaters and reviews on Google, another Bay Area tech giant, are mostly positive so far, with reviewers weighing in on the space's potential.