Beats Electronics was recently hit with a lawsuit by MOG’s Founder / former CEO, David Hyman. He said Beats fired him to avoid paying him money they agreed to, and is seeking $20 million.
Now, in a follow up to previous messy legal battles, Steven Lamar is going after Beats and some of their affiliates. Lamar is the founder of Jibe Audio.
In 2006, Lamar supposedly took the idea for Beats headphones to Jimmy Iovine. The two of them brought in Dr. Dre and leading design firm Pentagram. Industrial designer Robert Brunner was a partner at Pentagram and worked on the product design.
Beats then partnered up with Monster.
In 2007, everyone went to court. Dr. Dre and Iovine said Pentagram and Lamar were planning on releasing headphones without them.
They all came up with an agreement. Beats would give 4 percent of headphone sales to Pentagram, who would them share half of this with Lamar.
Hinrichs & Associates now collects Pentagram’s rights. In January, 2014 H&A took Beats to court. They say Pentagram deserves a percentage of later models of Beats headphones. This case has not yet been settled.
Now, Lamar is suing everyone… H&A, Pentagram, Brunner, Beats, Dr. Dre, and Iovine.
Lamar says he is only receiving royalties for one model of Beats headphones. He also says everyone havs been giving him the short end of the stick.
- Lamar is suing Brunner for “surreptitiously negotiating” a separate agreement with Beats, one that cut him out of the money stream.
- He is suing Brunner, Pentagram and H&A for breach of fiduciary duty.
- He is suing Iovine, Dre, Beats, Pentagram and H&A for breaching the agreement and denying the contract in bad faith.
See the full complaint here.
That was a mouthful. More updates as they become available.
When Nina Ulloa isn’t writing for DMN she’s usually reviewing music or at a show. Follow her on Twitter.