In just little over a month since Apple acquired Beats Electronics, the company is facing yet another lawsuit Monster filed a claim against Beats alleging that Beats co-founders Jimmy Iovine and Dr. Dre stole its headphone tech.
According to court documents filed Tuesday in Superior Court in San Mateo County, Calif., the original Beats headphones were designed in conjunction with Monster, but Monster CEO Noel Lee says that Jimmy Iovine and Dr. Dre took the technology and company knowledge and formed their own company, slapping Dre’s name on it.
Furthermore, Monster says that Beats through a “change of control” when Taiwanese phone maker HTC acquired a 51 percent stake in Beats in 2011 “fraudulently acquired” the line of headphones and its technology.
“Had the partnership expired on its own terms, there would have been no transfer of Monster’s ‘Beats By Dr. Dre’ product line, including all development, engineering, manufacturing, marketing, distributing and retail rights” the complaint alleges. “Defendants also absconded with Monster’s global distribution chain, key retail relationships and intellectual property.”
The defendants further “set about covering up the role of Lee and Monster and falsely claimed that Beats, through Iovine and Dre, successfully spearheaded all of the designing, engineering, manufacturing, production, marketing, and distributing of “Beats By Dr. Dre” products.”
Beats was sold to Apple last year for $3.2 billion.
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