From CNET: Audio equipment maker Monster has filed a lawsuit against Apple's Beats Electronics, claiming that the high-end-headphone maker's co-founders allegedly conspired to sever the headphone line from Monster before Apple bought the company last year for $3.2 billion.
In a complaint filed Tuesday in Superior Court in San Mateo County, Calif., Monster alleges that the Beats by Dr. Dre line of headphones was developed in partnership with Beats co-founders Jimmy Iovine and rapper and producer Dr. Dre. The lawsuit claims that Beats "fraudulently acquired" the line of headphones and its technology with a "change of control" clause when Taiwanese phone maker HTC acquired a 51 percent stake in Beats in 2011.
"Had the partnership expired on its own terms, there would have been no transfer of Monster's 'Beats By Dr. Dre' product line, including all development, engineering, manufacturing, marketing, distributing and retail rights" the complaint alleges. "Defendants also absconded with Monster's global distribution chain, key retail relationships and intellectual property."
Less than a month after the HTC purchase, Monster alleges that Beats repurchased half the interest HTC had just acquired.
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