In the wake of Monster’s lawsuit against Beats Headphones Apple has decided to remove the well known cable maker from it’s Made For idevice (MFi) program. This move will mean that Monster no longer will be able to manufacture licensed products for any of Apple’s devices which make up about 900 of the 4000 products in their catalog.
In January of this year Monster and it’s CEO Noel Lee had sued Beats alleging that Dr. Dre and Jimmy Iovine, who had sold Beats to Apple last year, essentially stole Beats from the company. Monster had in fact designed the first Beats headphones and produced many of the early models. Noel Lee claims his stake was at 3% as of late 2013 and should be worth at least $100 Million USD and was seeking putative damages as such since the company had sold to Apple for $3 Billion USD.
Monster further claims that Beats fraudulently acquired the Beats by Dre line of headphones from a deal with Taiwanese HTC Corp which purchased a controlling stake in Beats for $300 Million USD in 2011. Monster accuses Beats of exploiting a change-of-ownership clause allowing them to end their relationship with Monster.
Monster claims their business will be substantially impacted by being removed from the MFi program and that the firm had payed out over 12 million in lisencing fees to Apple since 2008 when it entered the program. The packages of the now infringing items will need to be changed along with some components to avoid using the licensed technology. Although no more may be produced Monster is allowed to continue selling inventory through September of this year.
A representative for Monster responded saying Apple’s reaction was excessive claiming that Monster did not attempt to sue Apple directly but they in fact inherited the dispute when they acquired Beats last year.