Well, Apple's legal team knew about this issue long before Apple Cops brought the suit on. They wouldn't have proceeded witht the iTMS if they thought that this might become a crippling issue. As a result, I'm sure that Apple Computers expects to sucessfully defend themseleves or has figured the costs of settlement into the business plan for the iTMS. Or both. Most likely, they're going to argue that they are not a music company in any way that violates the terms of the agreement, or that Apple Corps has not properly guarded their brand or something along those lines, and probably have a more than decent chance of winning.
So while this isn't a bad idea, I doubt it would even come to that. But to me, the best idea is to buy Apple Corps out, and the entire Beatles collection exclusive to iTMS. (Incidently, I ripped that idea off of "As the Apple Turns").
Apple Should Pay Apple Corp the iTunes Way