Beats Headphones, a headphone company owned by Apple, acquired a proposal for summary judgment. However, a jury will determine the amount of its due, instead of a judge.
On Wednesday, June 21, 2017, A California appellate court ruled Beats that it must make its appeal, before a jury, for attorney fees from Monster LLC. It was in 2015 when this legal fight started. It was when Monster (not the energy drink) together with its organizer Noel Lee charged Beats Electronics.
Trial Over Legal Fees
Lee, together with Jimmy Lovine and Andre Young (also known as Dr. Dre) settled to a deal that approved Monster the permission to sell and produce Beats headphones in 2008. The next year, Beats and Monster modified their agreement. The amended agreement includes a condition that Beats can stop the agreement after January 7, 2013, or if there is any alteration of control resulted from the closing of the transaction.
Beats understood that the change of control is the acquirement of 50% or more of the company. The termination condition was activated when HTC paid $300 million for 51% of Beats in August 2011.
In the 2009 agreement, Lee acquired 5% of Beats. In 2012, he then sold 3.75% and 1.25% in 2013. After seven months, Apple credited Beats $3 billion. Lee claims that the HTC acquirement was a fraud just to remove him out of the profits of Apple.
In January 2015, Monster sued for the scam. The company alleged that the deal made by HTC was intended to force Monster out of the manufacturing development. Around $5.5 million was paid to Lee for the 1.25%. And according to him, it would have been worth more than $30 million he paid after the Apple purchase.
Beats Plus DJ Khaled
On the other side of the fence, Beats By Dre has teamed up with DJ Khaled for new headphones. On Tuesday, DJ Khaled announced on Instagram about his new partnership with Beats. He then revealed his forthcoming headphones that are limited editions.
The upcoming limited edition line of headphones will be named as “Grateful Beats.” It will come in many colorways. Fans will also have a chance to win one if they pre-order DJ Khaled’s album on iTunes. Khaled did not reveal any details about the release date. However, he shared some few pictures of what “Grateful Beats” will look like.