Apple has stripped Monster of its license to make certified Apple accessories following a lawsuit the company filed against Beats Electronics in January, reports the WSJ. Monster has been making Apple accessories since 2005 under the MFi (Made for iPhone/iPod/iPad) program and some of its products have been sold in Apple Stores.
Monster’s general counsel David Tognotti said Noreen Krall, Apple’s chief litigation counsel, told him that their agreement was being terminated, effective May 5, because the relationship between the two companies is no longer “mutually beneficial” in the wake of Monster’s lawsuit. According to Mr. Tognotti, Ms. Krall said the suit would “destroy the working relationship” between Apple and Monster.
Monster is allowed to sell its accessories as MFi approved through September but had to stop making new ones.
Tognotti told Apple that the move would significantly disrupt the company's business and noted that Monster and Apple had worked well together for many years with Monster paying over $12 million in licensing fees since 2008. About 900 of Monster's 4000 products are made through the MFi program.
“It shows a side of Apple that consumers don’t see very often,” Mr. Tognotti said. “Apple can be a bully.”
Monster's lawsuit accuses Beats and its co-founders of tricking them out of potential proceeds from the company's sale to Apple. It also alleges that Dr. Dre and Jimmy Iovine both stole the technology behind Monster headphones when the two companies worked together.
Tognotti feels that Apple's move is excessive considering they didn't directly sue Apple; rather, Apple "inherited this dispute" when it acquired Beats.
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Comments (10)
Comments are closed for this article.
0
krux - June 22, 2015 at 7:46am
This is karma for selling Monster audio cables to the kids thinking we'd get better sound. That was in the 90's.. I fell for it.
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Sambadaddy - June 17, 2015 at 4:44am
I am a longtime obnoxious MacChauvinist, but the association with beats has me watching obliquely. If you use beats headphones, I know that you like shiny stuff more than you care about audio integrity. Beats is an ugly baby. I can't lie.
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Techno - June 17, 2015 at 4:41am
Apple should just destroy Monster for the way they have handled business. They sued everyone for using the word "Monster" and feels obligated to the name in itself. No one supports a bully and Monster is a big time bully! Apple is just the company that you can't bully. Good for you Apple, the truth comes out!!
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SimonSays - June 17, 2015 at 2:52am
Can't say I wouldn't have done the same if I was in apples shoes.
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Zjeproks - June 17, 2015 at 2:15am
Serves them right. I remember back in the day, the owner of Monster trademarked the name and sued everybody that use the monster name including monster.com, monster energy drink etc. http://www.wsj.com/articles/SB123869022704882969
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matrixmaniac - June 16, 2015 at 11:54pm
never heared of this monster company before.... is this about pr ??
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King Rollo - June 16, 2015 at 11:28pm
Don't blame apple. Of course it's stupid to keep them licensed when they just sued you! What did monster expect.. But like suing your boss and then wondering why you never get a raise..
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rick - June 16, 2015 at 10:16pm
dont sue the guys that make 1/4 of your company because then this happens. i work for a global manufacturing company that 80% of business is through distribution so if the distributor does some sort of thing to hurt us in any way we will cut them off and call it a day because is just bad business.
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Bill2192829 - June 16, 2015 at 10:14pm
Maybe it is time people learn more about Apple's business practices. I think success has changed their approach. Back in 2003, before the iPhone launched, things were different. Other companies need to step up their game and compete.
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rick - June 16, 2015 at 10:19pm
apple is and will be the leading consumer products manufacturer and will grow even bigger in the next few years. they are in most of the majority of goverment and fortune 500 companies and their ecosystem just works for everyone. they are not going anywhere at least for the next 100 years.