The settlement will replace the two companies' 1991 agreement over the usage of the Apple name, and will give Apple Inc ownership of all trademarks relating to Apple, allowing it to continue using its name and logo for iTunes.
Limited details of the agreement are known. However, it does appear that the deal does not include the addition of Beatles tracks to download on iTunes, and it is unclear whether they will be added in the near future.
A proportion of the Apple trademarks will be licensed back to Apple Corps for its continued use, and it has been confirmed that each company paid its own court costs in settling the dispute.
Steve Jobs, chief executive officer of Apple, described the long-running court battle as "painful", citing his love of The Beatles as a further blow to undergoing lengthy legal proceedings.
Jobs said: "We love The Beatles, and it has been painful being at odds with them over these trademarks. It feels great to resolve this in a positive manner, and in a way that should remove the potential of further disagreements in the future."
Neil Aspinall, manager of Apple Corps, said he was pleased to end the contract dispute, and added he wished Apple Inc "every success and look forward to many years of peaceful cooperation with them".
The dispute between Apple Corps and Apple Inc over the use of the Apple logo was the latest in a long line of disagreements between the two companies, dating as far back as 1978.
The most recent dispute began in 2003, when Apple Corps sued Apple Inc for breach of content for using the Apple logo on iTunes, which it said violated a previous agreement between the two companies.
Apple Corps rejected a $1m offer from Apple Inc to use the Apple name on iTunes in a London court in 2003, and the court found in favour of Apple Inc. Apple Corps went to the Court of Appeal last year, and the bitter dispute continued until today's settlement.