Monster's claims that
Beats Electronics fraudulently ended their relationship were dismissed
in a Los Angeles Superior Court today, leaving Beats and Apple off the
hook. The judge ruled that Beats was allowed to end their partnership,
meaning its actions were not, as Monster and its CEO Noel Lee claimed, a
"sham" designed to take control of their shared headphone
line.
The case continues, but
not in a way that Monster's going to be happy about: Beats is now countersuing
for attorneys' fees, claiming its termination agreement with
Monster should have prevented this lawsuit — or really any other lawsuit —
from being filed in the first place. Apple declined to comment, and
Monster attorney Philip Gregory did not return a request for comment.
“MONSTER ESSENTIALLY SAYS BEATS
RAN OFF WITH ITS WORK
”
Monster and Lee filed
the suit in January of 2015, essentially arguing that it invented Beats only
to have Dr. Dre and Jimmy Iovine steal the headphones away from them. Monster
had been a close partner of Beats during those first few years, with Monster
handling manufacturing, as well as, it claims, engineering, marketing, and
distribution. Beats cut off ties to Monster in 2011, shortly after HTC
took a controlling stake in the company. Monster, for whatever reason,
claims this didn't really happen and was just an excuse to trigger a contract
clause letting Beats go free.
But the ruling
today suggests that determination was up to Beats and that Monster had little
if any say in the matter. The judge writes, "Monster agreed that Beats
had the right to terminate the agreement as of January 7th, 2013 or when
there was a transaction resulting in a change of control of Beats. [Monster]
did not obtain the right to approve the change of control. Nor did the
agreement require that any change of control had to be objectively
reasonable." The judge also dismissed claims that HTC aided in the
supposed breach of contract.
* Vocab:
- be fraudulent (adj):
having intended to deceive or cheat someone.
- be dismissed
(v): be rejected, be turned down, put an end to a trial.
- dismissal (n): a
sort of a "pink slip".
- sham (n): something
that is not really what it is.
e.g.: it
is believed that Mr. John is not a lecturer in our uni; he is just
a sham.
- countersue for (v):
sue against somebody, a civil action against somebody.
- termination agreement
(n): an agreement between two people - an employer and employee.
- cut off ties to
somebody or something (v): put an end to one's relationship.
- take a controlling
stake in something (n): hold a higher share in a company.
- have a stake in
something (idiom): specially interested or involved in something which is
believed to be important.
e.g.: Most of single
moms has a stake in their children's education.
- ruling (n): a court's
judgement.
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