Beats Electronics founders, Jimmy Iovine and Andre “Dr. Dre” Young, have been wound up on the bad end of a recent verdict in Los Angeles. A jury has found that the duo will be responsible for paying out $25 million in royalties to their former business partner, Steven Lamar.
The legal battle between the two parties dates back over a decade. In 2006, Young’s lawyers filed a lawsuit against Lamar and company that alleged that they had not met contractual agreements. In 2007, the two parties made an agreement that required Iovine and Young to pay Lamar a four percent royalty for every Beats Studio headphone sold. However, Lamar believed that the design he created for the Beats Studio model had been used for later models of the headphone and the jury agreed. As a result, Lamar is now owed $25247,350 in royalties from the Studio 2 remastered, Studio 2 wireless and Studio 3 models.
Brian D. Melton of Lamar’s legal counsel stated, “We are pleased by this result for Mr. Lamar as it recognizes the key role he played in the origin of the world’s most recognizable headphones.” Melton added, “We are thankful to the jury for providing this long-sought vindication for him.”
Young and Iovine’s legal team have yet to comment of jury’s decision.
