Beats Electronic LLC needs to pay up a former partner $25.2 million, according to a court ruling handed on Wednesday, June 27.
The Los Angeles Superior Court jury says that Dr. Dre, Jimmy Iovine, and the audio company they founded breached a contract they previously signed with Steven Lamar and Jibe Audio.
Dr. Dre, Jimmy Iovine Lose Legal Battle
"The jury really validated our theory of the case, that Mr. Lamar was involved in the founding of Beats," said Lamar's attorney, Stephen E. Morrissey, to The New York Times. "It's not everything we were asking for, but we're happy."
According to the suit, in 2006, Lamar came forward to Dr. Dre, whose real name is Andre Young, about an idea for a headphones line that will be endorsed by celebrities. The product was based on the design by Robert Brunner, a renowned industrial designer. However, there was a falling out and a settlement between both parties was drafted.
Lamar now claims that Dr. Dre and Iovine violated that settlement.
In 2014, Lamar's legal team filed a lawsuit that alleges that Beats Electronics LLC owes him a lucrative amount of royalties for the sale of later models of headphones. The case, according to The Hollywood Reporter, was initially dismissed by a judge, but then revived by an appeals court.
The case went to trial earlier this month, with Lamar claiming that the company owes him $100 million in royalties.
The defendants recognized that Lamar was part of the initial plans in a testimony in court, but do not believe that they owe him royalties for the later models of the headphones. They argued that Beats owed Lamar royalties for the original Studio model, and was already paid.
Apple acquired Beats Electronics in 2014 for $3 billion, shortly after Lamar filed his lawsuit against Dr. Dre and Iovine. The tech company earlier this month celebrated the 10th anniversary of the audio brand with the release of a Decade Collection featuring its recognizable logo in black with red accents.
Apple, Dr. Dre, and Iovine have not issued statements regarding the recent court ruling.
Marvin Gaye Estate Says Dr. Dre Has Not Acquired Rights To Biopic
In related news, contrary to previous reports, the son of Marvin Gaye told The Blast that Dr. Dre has not been given the rights to adapt the life of the music icon to the big screen.
Last week, several publications announced that the rapper/music mogul is retelling the story of the "Sexual Healing" singer in a movie. Sources claimed that Dr. Dre, who previously produced Straight Outta Compton, already have the rights to the planned movie and the late music icon's discography.
However, apparently, that is not the case. Marvin Gaye III said that the announcement was made prematurely.
"In regards to the announcement that was made in the media on June 18 as it pertains to a biopic about my father, the legendary iconic singer Marvin Gaye, that is being produced by Dr. Dre, I want to say that it was prematurely announced, therefore I denounce these statements," he said. "I love and highly respect Dr. Dre, and we are currently in talks about his participation in the film. However, the movie rights have not been granted nor secured at this time from me as an heir."
Gaye added that he would want to see an experienced and capable crew to create the biopic. While the Motown icon's estate has notoriously been tough in licensing the music and legacy of the late singer, The Blast adds that it is "extremely possible" that an agreement will be reached and the biopic will go into production soon.