The Apple versus Apple case is unlikely to see an out of court settlement, sources have told Macworld UK.

Speaking anonymously, the source explained: "The thing is, settlement negotiations began, but as they progressed, both sides began to feel that they were completely in the right."

At issue are clauses in agreements between the two companies regarding Apple Computer's music efforts. It appears some clauses support the computer company in the digital domain.

The Beatles, however, may feel secure that the main thrust of the previous deal - to limit Apple Computer's operations within the music business - still stands.

The source also reported that previous reports pertaining to the case have been flawed.

"This will not end with the biggest out-of-court settlement," they explained. "Reports claiming this were incorrect."

Rumours that former-Beatle Paul McCartney will take a seat on Apple Computer's board were also dismissed as untrue.

"This case is likely to go to court," the source told Macworld, adding that the affair will likely be settled "within the year".

On Apple's recent decision to fire its legal advisors, Linklaters, in favour of Freshfields Bruckhaus Deringer, an industry insider remarked: "Linklaters repuation indicates it may have been inflexible in terms of billing and reports.

"If there was going to be a change in legal team, to do it now before the case actually begins in the court is the best time to do it."

The case will be tried in the UK High Court. Apple had been pushing for the case to be tried in California instead, but the UK high Court declared that it held jurisdiction on the affair.

Apple had originally planned to appeal, but dropped those plans, "because it felt it had a good case", the source reported.