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American Morning
Apple v. Apple; The Next Step for Andrew Card
Aired March 29, 2006 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Allegations of sexual abuse effectively end the season for one Duke University sports team, even though the school says they are not being punished.
Two apples today won't keep the lawyers away. A battle over iTunes heads to court.
Plane parts falling from the sky? Residents of one New Jersey town suddenly feel that Chicken Little was right.
And a bag of jewels found on a park bench. Guess who's got them now?
Good to have you back with us. The eclipse continues. There it is. There's a nice close-up. It's kind of hard to -- if you are just tuning in, you might wonder what that might be.
That's a telescopic view of the sun as the moon is passing in front of it. A total solar eclipse, first time since 2003. The last one was...
CAROL COSTELLO, CNN ANCHOR: It's gone.
O'BRIEN: Talk about eclipse. Gone. The light goes out.
The last time it happened was visible -- there you go. Take a look at the solar flares there. Isn't that cool?
COSTELLO: That is awesome.
O'BRIEN: On the top edge there you see those solar flares. Yes, that has tremendous impact, ultimately, these solar flares and solar storms on things like communication here on Earth because it sends -- it bombards us with little...
COSTELLO: So those voices I'm hearing in my head because of those solar flares?
O'BRIEN: That's what it is. It sends a blast of radiation our way at times, depending on how active the sun's cycle is, which is about an 11-year cycle.
COSTELLO: Fascinating. Well, we're going to show you more of the eclipse later. Right we have to get to the headlines.
Kelly Wallace is standing by with them.
Good morning again.
KELLY WALLACE, CNN ANCHOR: Good morning again, Carol.
Hello, everyone.
Former Liberian president Charles Taylor back in custody. Taylor is one of the world's most wanted war criminals. He has been living in exile in Nigeria and disappeared on Tuesday.
Nigerian forces say they caught him trying to cross the border into Cameroon. President Obasanjo of Nigeria is in Washington. He has ordered Taylor back to Liberia immediately. President Obasanjo expects to make a statement later this morning.
Italy's prime minister, Silvio Berlusconi, says his country will gladly grant asylum to a Christian from Afghanistan. Abdul Rahman was released late from jail late Monday. He had been facing the death penalty for converting from Islam, but the Afghan court dropped charges after mounting international pressure. Rahman is now reportedly being held at a secret location due to numerous death threats.
A grand jury in New Orleans considering the case of a beating caught on tape. And you probably remember this story.
Sixty-four-year-old Robert Davis was beaten on Bourbon Street last October. The officers have been charged with misdemeanors. The grand jury will be deciding if there is evidence to proceed with a more serious criminal case.
A water ban in two New England towns after a break-in at a water supply facility. Authorities found a suspicious container left behind. That plant supplies water to towns on the Massachusetts-Rhode Island border. Authorities have ruled out terrorism and there are no reports of anyone getting sick. Tests results on the container are expected today.
Talk show host Charlie Rose undergoing open heart surgery in Paris today. The 64-year-old flown to France after experiencing shortness of breath last week in Syria. He was there to interview Syrian president Bashar al-Assad. Doctors expect Rose to be back at work in New York by the end of April.
And talk about doing the absolute right thing, a San Francisco man found a purse on a park bench. He returned it, even though it contained a million dollars in cash and jewelry. John Sirhoff (ph) says he never considered keeping the bag. The purse belonged to a Canadian couple in town for their daughter's wedding.
Miles, Carol, that couple very, very happy indeed.
O'BRIEN: A good deed indeed.
WALLACE: A good indeed, yes.
O'BRIEN: Thank you, Kelly. WALLACE: Sure.
O'BRIEN: It is Apple versus Apple, with one of the world's biggest computer makers facing one of the world's greatest brands in the court. At issue, Apple Computer getting into the online music business using the Apple name, which is its company, after all, and logo.
Now, here's the -- here's the rub. The Beatles record company, which was founded before Apple Computer -- and theirs is Apple Corps -- that's spelled C-O-R-P-S, not C-O-R-E -- says -- Apple Corps says that the computer company is breaking an agreement they had when Apple Computer came out to stay out of the music biz.
Well, you can be an Apple. Just stay out of our turf.
Jim Boulden is live now outside a London high court, where all of this is playing out.
Jim, what's likely to happen today?
JIM BOULDEN, CNN CORRESPONDENT: Well, Miles, we're just two hours into this court case. We're expected to go for about two weeks.
At the nub is, you know the difference. This is obviously a record by the Beatles. This is obviously from Apple Computer's iPod.
Apple Records says that this violates the very agreement. This says they think that Apple Computer has now become a music company, and that violates a 1991 agreement. But, of course, back in 1991, Miles, no one could have foreseen the huge success of iTunes.
(BEGIN VIDEOTAPE)
BOULDEN (voice over): Most people under 25 associate the word "Apple" with these tiny things, iPods. Everywhere you look someone somewhere is riding something or crossing a street wearing the telltale ear buds. But not on this road. At least not back when the Beatles were recording music on their Apple record label in the late 1960s.
Enter Steve Jobs' Apple computers in 1976, and the battle of the Apples begins.
After years of legal wrangling, the two Apples hashed out an agreement limiting Apple Computer's ventures into the music business. But times and technologies change. The iPod was born.
The little machine, which according to Apple the music company, puts Apple the computer company in the music distribution business.
DAVID ROSE, S. J. BERWIN: What we now have because of technological advance is we have this clash that was not clearly contemplated in the early 1990s when the earlier settlement was done.
BOULDEN: iTunes has distributed a billion songs in the form of downloads, 75 percent of all legal downloads. Paul and Ringo and the estates of John and George still own Apple Corps. They aren't singing, "We can work it out." They want a judge to put a stop to it immediately.
ROSE: It is quite possible that Apple Records will be able to secure an injunction to stop Apple Computer using the Apple name in relation to these music-related activities.
(END VIDEOTAPE)
BOULDEN: Now, Apple Corps says it's very simple, Miles. They want Apple Computer to stop using the Apple logo on anything to do with iTunes. They must separate the two. And, of course, Apple Corps is also looking for some money, because they say that agreement in 1991 was violated.
O'BRIEN: So I guess we'll see how the worm turns on this one. Is this the reason why I can't download the Beatles on iTunes?
BOULDEN: Absolutely not. You cannot download the Beatles anywhere. That is because Paul McCartney and co had said they don't want it downloaded yet.
But a bit of trivia here. The judge here has admitted he has an iPod and has used iTunes. We also know that Paul McCartney has an iPod. So maybe, maybe some people think could this agreement finally lead to Beatles being downloaded somewhere, if not on iTunes?
O'BRIEN: All right. Well, you know, one's a Granny Smithy, one's a McIntosh. Maybe there's a way we can all get along.
All right. Jim Boulden, thanks very much -- Carol.
COSTELLO: Thank you, Miles. Thank you, Miles, for all those puns. You woke me up.
O'BRIEN: You're welcome.
COSTELLO: The other big story in London this morning, the adorable Prince Harry makes his debut. All right. It's really his wax and image on display at Madame Tussaud's.
It looks so life-like. Doesn't it? He joins his brother William, as well as the rest of the immediate royal family.
A Tussaud's spokeswoman says there are no plans to have Camilla, the duchess of Cornwall, join them. That's because they are busy, Chad, working on your own wax image.
CHAD MYERS, CNN METEOROLOGIST: Harry looks awesome.
COSTELLO: He does. Doesn't he?
MYERS: You know, I always thought they should make wax Bobbleheads. And then if you give them a shake...
COSTELLO: But they wouldn't bobble.
MYERS: Well, you put them on a spring. It would go back and forth.
Good morning, Carol.
(WEATHER REPORT)
O'BRIEN: Thank you very much.
The Card shuffle. White House Chief of Staff Andy Card is out, but is this just laying the groundwork for an even bigger shakeup? We'll ask former White House staffer Mary Matalin about that.
COSTELLO: Plus, Card might be heading out the door, but don't cry for him. A look at the very lucrative private life that awaits him.
O'BRIEN: And speaking of lucrative, the Olsen empire may soon get even bigger, as if it isn't big enough already. We'll tell you about the teen titans latest plans to get a hold of Connery O'Brien's (ph) allowance money.
No, you're not going to get it. No.
Stay with us.
(COMMERCIAL BREAK)
O'BRIEN: Making some news "In America" this morning.
In Maryland, sniper John Allen Muhammad, convicted in Virginia, goes to court today in Maryland. He wants to represent himself at a trial on 10 murder charges. His lawyers call him psychotic, paranoid, delusional and not competent to stand trial.
A tearful reunion now a painful reminder. Remember that family that was rescued after more than two weeks stuck in the snow in Oregon? Well, two of them are now in custody on drug charges.
Albert and Becky Higobotham (ph) were finally tracked down in Washington State. Arizona officials issued the warrants after seeing the couple on TV after their well-publicized rescue.
Airplane parts falling out of the sky on to Nutley, New Jersey. Pictures of portions of the engine cowling form a FedEx cargo plane. The pieces fell off the DC-10 just a little after takeoff from Newark airport. Luckily, no one got hurt, and the plane landed safely several hours later in Oakland, California -- Carol.
COOPER: On to politics now, and the next step for Andrew Card, that is. So, what does an outgoing White House chief of staff have to look forward to in his post-West Wing days? Well, a much bigger paycheck, for one thing.
CNN's Tom Foreman takes a closer look for you. (BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): The number-one new movie in Hollywood is the tale of a bank robbery led by an inside man.
UNIDENTIFIED MALE: I have decided to step down.
TOMMY THOMPSON, HEALTH AND HUMAN SERVICES SECRETARY: It's a -- obviously, a very difficult decision.
FOREMAN: But Washington insiders have, quite legally, been making out like bandits for years, especially insiders who are getting out.
ANDREW CARD, WHITE HOUSE CHIEF OF STAFF: I was a staffer. And now I look forward to being your friend.
Thank you, Mr. President.
FOREMAN: Andy Card made $161,000 a year in the White House. But he could rake in a bundle if he becomes a consultant for big business, according to CNN political analyst Bill Schneider.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: As a private consultant, your income will go into the millions, probably a couple of million dollars, maybe more.
FOREMAN: That's the price tag business will pay for two things, inside knowledge of plans being considered at the highest levels of government, and connections that only a recent insider can deliver.
SCHNEIDER: They grease the wheels. They make things happen. They are the interface between the private sector and government.
FOREMAN: Jennifer Palmieri worked in the Clinton White House and can still call her old boss.
JENNIFER PALMIERI, CENTER FOR AMERICAN PROGRESS: Oh, yes, I could get Bill Clinton on the phone. You want me to call him now?
(LAUGHTER)
FOREMAN (on camera): That's cool. Let's give him -- yes, give him a call. Call him.
(voice-over): But, she says, the value of being an ex-insider is stronger if your connection or your party is still in power, or if you have built a sustainable worldwide reputation, like Henry Kissinger, out of office for many years, still a high-priced player.
PALMIERI: My sense is that businesses are getting a little more savvy, and they're not particularly impressed about who you can get on the phone. They want to know -- you know, their very bottom -- you know, this is a very bottom-line...
FOREMAN (on camera): Can you produce results? PALMIERI: Can you produce -- can you produce results? And, you know, that's tougher to do.
FOREMAN (voice-over): Still, ex-insiders can find plenty of other work, in TV, giving speeches. Want Jimmy Carter's national security adviser, Zbigniew Brzezinski, at your next convention? That will be $25,000 to $40,000, according to his agency. And on it goes for the ex-insiders, writing books, think tanks, and political punditry.
UNIDENTIFIED FEMALE: The Democrats are going to lose the dog vote.
WOLF BLITZER, CNN ANCHOR: That's not going to happen.
FOREMAN (on camera): Hi. I'm a consultant. Can I offer you some advice?
(voice-over): Advice is hard to even give away in the nation's capital, because there's so much competition.
(on camera): Yes.
UNIDENTIFIED FEMALE: I'm a consultant, too.
FOREMAN: You're a consultant, too.
UNIDENTIFIED FEMALE: Do you need...
FOREMAN (voice-over): But, for ex-insiders, Washington is always a seller's market.
Tom Foreman, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: Imagine running into a consultant on the streets of Washington, D.C. Tom's report first aired on "ANDERSON COOPER 360," which you can catch weeknights at 10:00 Eastern right here on CNN.
O'BRIEN: Coming up, one Card is dealt. Is it the beginning of a full-deck shuffle? We'll ask former White House staffer Mary Matalin what the deal is.
And later, is she a poetry prodigy or a budding racist? The story of a little girl and her provocative prose ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
(MUSIC)
COSTELLO: I was just trying to guess who sings this song and I don't know.
O'BRIEN: "Secret Agent Man." This is -- but I don't know... COSTELLO: Let's go to the person who knows everything, Kelly Wallace.
WALLACE: I don't know the answer to that question. I'm hoping Carl (ph) will tell me in my ear, but -- well, he doesn't know either. OK.
Hello, everyone.
We are starting with the fate of Zacarias Moussaoui. His fate could go to the jury today.
Closing arguments set to begin in Moussaoui's sentencing trial. Moussaoui shocked the court on Monday when he admitted knowing beforehand about the September 11 attacks. Each side will get an hour to argue whether he should get the death penalty or life behind bars.
In about two hours, Nigerian president Olusegun Obasanjo is expected to comment on this morning's capture of former Liberian president Charles Taylor. You see the two of them greeting each other back in 2003 when Taylor arrived in exile in Nigeria.
Obasanjo is in Washington this morning, and he's set to meet with President Bush. Prior to Taylor's arrest there had been suggestions the White House would cancel that meeting.
Duke University's lacrosse team is out, at least for now. School administrators say the team may not play again this season. The team is at the center of a rape controversy. Police are waiting for DNA results from the players.
New Orleans officials are putting residents on notice they will be forced to evacuate if another hurricane threatens the city. The city says it will not provide shelter for anyone who stays, and anyone now living in FEMA trailers will be forced to evacuate for something as small as a tropical storm. The hurricane season begins June 1.
And sometimes the lure of toys is just too much for a little kid to handle. And that's where 3-year-old Devon Haskin (ph) fits in, literally. Devon (ph) fit through a hole in the machine that's about seven inches by nine inches. And after rescuers pried the door open to get him out, get this, he didn't want to go.
Chad, he wanted to stay inside with all of those toys.
MYERS: Of course. Sure.
WALLACE: Including Batman and everything else. Can you blame him?
MYERS: No. You know, I'm just thinking, good thing he didn't try to climb into the Whac-A-Mole machine, because that would have been a completely different outcome.
WALLACE: It sure would have been.
MYERS: Good morning, Kelly.
Good morning, everyone.
(WEATHER REPORT)
MYERS: Back to you.
COSTELLO: Thank you, Chad.
MYERS: Sure.
O'BRIEN: Andy is back. Well, actually, you were back yesterday...
ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": I was.
O'BRIEN: ... but I wasn't.
SERWER: But you wasn't.
O'BRIEN: So here we are, reunited.
SERWER: Together again.
O'BRIEN: Reunited, Peaches and Herb, back together.
SERWER: Can you stand sitting here between us?
All right. Let's talk business here, you guys.
Wal-Mart says it's going to start showing up unannounced. And speaking of Wal-Mart, Mary-Kate and Ashley Olsen have a new pitch to the giant retailer. We'll tell you all about it coming up next on AMERICAN MORNING.
(COMMERCIAL BREAK)
COSTELLO: A look now at some of the stories we're working on this morning.
President Bush is traveling to Mexico today to discuss immigration reform.
Former Liberian president Charles Taylor captured in Nigeria.
Lifelong GM employees cope with the company's recent layoffs.
Andrew Card's resignation may be a sign of things to come at the White House.
And the story of a boy and his dog and a very dicey situation. Details of the rescue coming your way on AMERICAN MORNING.
Let's talk about Wal-Mart now, because apparently it's going the extra mile to check on working conditions?
SERWER: That's right, Carol.
You know, the company is obviously the subject of so much attention and controversy, fighting back against its critics now. The company says it's going to step up surprise inspections at thousands of factories overseas that make products like clothes, toys and shoes that it buys.
The company does business in over 60 countries now, or I should say gets its goods from over 60 countries. It says it's going to have increased inspections, 30 percent of its inspections this year will be surprise inspections. Last year it did 13,600 inspections looking for labor violations and environmental violations as well.
And, you know, critics saying it's not doing enough. And this is partly to mollify those criticisms, but partly it's good business stuff, too.
O'BRIEN: That's a lot of inspections. How many violations?
SERWER: Well, a hundred of these factories they actually stopped doing business with last year. And they found violations in hundreds more. So, you know, they really are trying to do some stuff, I think, here.
Speaking of Wal-Mart, Mary-Kate and Ashley Olsen, you know they have a clothing line at Wal-Mart. It does about $700 million a year in business. It's focuses on tweens, though, 8 to 12-year-olds, but the Olsen twins are now 19.
So they've been -- now going to make their line addressing older girls, now doing 14 to 18-year-olds, and their CEO says they're going to be pitching this clothing line to execs in Bentonville (ph) presently. So look at them -- as they're growing up they continue to make clothes and products that address their age group.
COSTELLO: It always amazes me that they could have a clothing line. But you know they're not going to wear their own clothes from Wal-Mart.
SERWER: No, I don't think they are.
COSTELLO: They are into designer duds.
SERWER: They're Hollywood socialites -- or New York socialites now.
O'BRIEN: Somebody should by them a meal. They're looking a little skinny.
SERWER: They are all grown up. Well, better to wear their clothes, right?
O'BRIEN: I guess.
Let's get the weather in.
Chad Myers...
MYERS: Yes, sir?
O'BRIEN: How are you?
MYERS: Good.
(WEATHER REPORT)
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