Apple acquired Beats last year for $3.2bn. In its lawsuit, Monster and its chief executive Noel Lee accused Beats and its co-founders, Jimmy Iovine and rapper Dr. Dre, of cheating Monster of potential proceeds from the company’s sale to Apple. Monster had been making licensed accessories for Apple devices since 2005 under its MFi program, which gives third-party manufacturers a certification logo, components and technical support to ensure the accessories will work with Apple products. Monster’s general counsel David Tognotti said he told Apple the move would severely disrupt Monster’s business, with roughly 900 of its more than 4,000 products made through the MFi program.
Another side of Apple
Mr Tognotti said Noreen Krall, Apple’s chief litigation counsel, told him their agreement was being terminated because the relationship between the two companies is no longer ‘mutually beneficial’ in the wake of Monster’s lawsuit. Mr Tognotti claimed Ms Krall said the suit would ‘destroy the working relationship’ between Apple and Monster. ‘It shows a side of Apple that consumers don’t see very often,” Mr. Tognotti said. “Apple can be a bully.’ Source: The Wall Street Journal
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