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Beats Headphones Royalty Dispute Saga Heads to Trial

By Amanda Bronstad

Former hedge fund manager Steven Lamar, who helped launch Dr. Dre's Beats headphones a decade ago, won the right to go to trial against the rap artist and record producer after the California Court of Appeal revived his $100 million case over unpaid royalties.

Dr. Dre released the Beats line of headphones in 2008 with the launch of the Studio model. Apple Inc. bought Beats Electronics, the company behind the brand, for $3 billion in 2014. But lingering in the background has been litigation involving Steven Lamar that dates back to the origins of the best-selling headphones. California's Second District Court of Appeal recently revived Lamar's claims that Dr. Dre and record producer Jimmy Iovine, co-founders of Beats Electronics, owed him royalties on all 10 models of Beats headphones, not just the Studio. Jibe Audio LLC v. Beats Electronics LLC, B267633 (Sept. 19, 2016).

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