Andre Dr Dre Young, Jimmy Iovine are heading to court to battle it out with entrepreneur Steven Lamar!
According to the lawsuit, Steven Lamar claims that Dr Dre and Jimmy Iovine owe him over $100 million in royalties. Read on for all the details…
CelebNMusic247.com has learned that a trial is now underway in Los Angeles Superior Court that explores the genesis of high-end Beats headphones and the deal-making between the three men.
Steven Lamar is suing Andre “Dr. Dre” Young, Jimmy Iovine, and Beats Electronics. Lamar alleges being the one back in 2006 to propose to Dre and Iovine a line of celebrity-endorsed headphones based on a design by Robert Brunner, a renowned industrial designer.
But the parties had a falling out in the early years, and Dre and Iovine sued Lamar for breach of contract. This prior lawsuit then led to a settlement where Lamar relinquished rights in exchange for a four percent royalty on every headphone sold by Monster and its affiliates. After the settlement, Beats released new headphone models and began paying a two percent royalty to Brunner until sometime in 2014 when Beats bought out Brunner’s interest. Dre and Iovine would later sell Beats to Apple for $3 billion.
The big question in the case is whether Lamar is due royalties for the later derivative versions of Beats headphones or whether the defendants fulfilled its obligations by merely paying him for the first headphone model.
How did Dr Dre and Jimmy Iovine end up back in court over the same lawsuit by Steven Lamar?
The trial judge initially rejected Lamar’s claims, but in Sept. 2016, a California appeals court revived the lawsuit by finding that the royalty agreement was “ambiguous” enough that a jury must consider the factual conflict about the interpretation of the contract.
We will keep you posted…