Originally posted 2014-10-03 11:00:22.
By Christina Severino | amdlawgroup.com
The recent purchase of Beats Electronics by Apple for $3 billion has left self-proclaimed Beats co-founder Steve Lamar in the dust. Last week, Apple (Beats Electronics, LLC—“Beats”) filed a lawsuit against Lamar claiming false advertisement and unfair competition. Beats contends Lamar has falsely claimed that he is a co-founder of the company, with Dr. Dre (Andre Young) and Jimmy Iovine. The company further asserts that Lamar has never had an ownership interest in Beats Electronics, LLC.
Beat’s motivation for bringing this action stems from a variety of influencers, where Lamar’s statements claiming himself as a co-founder eventually spread like wildfire among various social media users on websites such as Twitter, and other news media and bloggers. The media buzz revolves around Lamar’s new headphones brand, Roam. In promoting the brand and himself, Lamar has continued to utilize social media and other means. He has also made statements on his Roam webpage regarding his Beats affiliation, which are allegedly false. However, the fight between Lamar, Dr. Dre and Jimmy Iovine ensued long before Apple became involved. In 2006, Lamar brought his idea of creating an endorsed headphone concept to Iovine but their collaboration eventually dissolved. As a result, Lamar went after Iovine and Dr. Dre in 2007 for royalties in a subsequent and separate dispute and received 4% of the royalties on some of the headphones sold. However, the issue of whether Lamar should collect royalties from the infamous “covered headphones” is still unresolved.
The attorneys representing Beats are asking that the court force Lamar to remove any statements made on social media sites claiming his co-founder status at Beats. In addition, they are asking that Lamar issue a public statement to clarify and to also pay subsidiary profits and treble damages to the parent company, Apple. Lamar’s (Roam’s) attorney is asking that an agreement be reached in the same way the parties settled back in 2007.
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