It wasn’t long ago Dr. Dre and Jimmy Iovine’s brainchild, Beats, celebrated its 10th birthday will a selection of revamped headphones, yet the duo hasn’t recently been taken to court over a $100M royalty case. As for why they are being sued, the entrepreneur Steven Lamar claimed that he was apparently the one to suggest the idea of producing an array of celebrity-endorsed headphones to the team back in 2006. However, after Lamar breached the terms of his contract he settled for a 4% royalty for every headphone sold which he apparently hasn’t seen.
Now it may seem like this will be an easy win in court for Lamar, however, complications arise as the reason Jimmy and Dre haven’t paid him his desired amount is that they believe he is only entitled to receive royalties for the first line of headphones and not for every headphone ever sold. From here the Los Angeles Superior Court will have to decide as a judge initially rejected the lawsuit, but a California appeals court overturned the decision as the agreement remained unclear around Lamar’s end of the deal. I guess we will have to wait and see.
