UK’s Daily Telegraph reports that EMI and Apple agreed to settle a dispute over underpayment of record royalties on sales of Beatles records between 1994 and 1999. Executives at Apple Corps and EMI can now sit down and work out a new royalties deal to cover music downloads of their singles and albums through iTunes and other online services.

Sir Paul McCartney, Ringo Starr and relatives of John Lennon and George Harrison had alleged that EMI underpaid ¬£30 million in record royalties on sales of Beatles’ records between 1994 and 1999. Details of the settlement are confidential, but it is thought that the Beatles will receive a multi-million pound sum as part of the settlement.

The claim related to every album recorded by The Beatles as a group and later as solo performers between 1963 and 1976, including Help!, Rubber Soul, Sergeant Pepper’s Lonely Hearts Club Band and Abbey Road, as well as John Lennon’s Imagine.

The royalty settlement means that EMI and Apple can work on royalty terms for the sale of Beatles’ songs over the internet.