The availability of the Beatles back catalogue in legal digital download format has become more likely with news yesterday that the group's company, Apple Corp, had settled a royalty suit with record label EMI, writes John Collins.

Neither side released financial details of the settlement, but an Apple Corps spokesperson said the deal was agreed last month. EMI distributes the Beatles music, while Apple Corps retains ownership of the copyright.

Apple Corps sued EMI in 2005 over what it alleged were royalty underpayments of £30 million (€44 million) on sales of Beatles records between 1994 and 1999.

The settlement means both sides can now negotiate a new deal that would include online sales. Apple has consistently refused to licence the Beatles catalogue for online sales although EMI has signalled a number of times that it wishes to do so.

There had been speculation the band's music would be sold online when the record company and technology giant Apple settled a trademark dispute over their logos last February. Earlier this month when Apple, the iPod maker, and EMI announced they would sell music through iTunes that will not include any inherent copyright protection, it was expected they might also make an announcement on the Beatles.

At that event, EMI chief Eric Nicoli said the companies were "working on it" but would not give a time frame for when a deal might be struck.

A surprise change in personnel at Apple Corps also suggests change might be in the air. Earlier this week Neil Aspinall, the media-shy businessman and boyhood friend of the band, who had overseen their financial interests for over 40 years, stepped aside.

Mr Aspinall, dubbed the "fifth Beatle", has fiercely guarded their legacy and his departure has further fuelled expectation of an internet debut for the band.

Mr Aspinall has also refused to license the Beatles music for compilations because he felt it would cheapen the band's image.

Apple has appointed a new chief executive Jeff Jones, who previously headed up Sony BMG's Legacy Recording division which specialises in re-issuing classic albums.

The recent change in chart rules, which allow for internet downloads on their own to count towards chart placings, means that, once a deal is struck the Beatles are likely to dominate the charts once again.

It would also provide a financial boost for EMI, which despite being the world's third biggest music company, announced a major cost-cutting plan at the start of the year and has been the subject of takeover speculation for months.