Jury Rules That Beats Founders Owe $25 Million In Royalties To Designer

Pay The Man

A jury in LOS ANGELES ruled that BEATS ELECTRONICS founders DR. DRE and JIMMY IOVINE owe $25 million in royalties to one of the early designers of the BEATS original Studio model headphone, BLOOMBERG reports. 

STEVEN LAMAR, who worked on the concept and design of the BEATS headphones, signed over the rights to the BEATS design in exchange for royalties on all models that were derived from the design he worked on -- not just the Studio model first sold in 2008, which the BEATS founders asserted. The jury awarded him royalties on the later Studio models, but not on other models, according to his lawyer. Interest and attorney fees could increase the judgment to more than $40 million.

IOVINE and DRE eventually sold BEATS in 2014 for $3 billion.

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