Music mogul Jimmy Iovine and Dr. Dre have been ordered by the court to pay a total amount of $25.2 million to a former partner that was a member of their company, Beats. So far Dre and Iovine have been working together for a very long time. They started working together on Dr Dre’s first album the ‘Chronic’. The former partner at Beats, Steven Lamar claimed that he needed credit for being a part of the members that assisted in generating the idea of the celebrity endorsed headphones. Stephen Lamar claimed that he developed the idea and took it to Iovine and Dr. Dre in the year 2006. After the idea was considered by the duo, the first headphones were released two years later. They launched the headphones based on the design by Robert Brunner.
The members later fell apart, and Stephen Lamar was sued by the Beats Company over the unpaid royalties in the year 2016. In the middle of their dispute, there was a 2007 year settlement in which Iovine and Dre came into terms to pay Stephen Lamar 4% of the base price for every headphone that the Beats Company sold. Only a single model, Beats studio was pinpointed by Stephen Lamar who argued that the design had been carried over to a dozen other altered models and sought $130 million in royalties. A court in Los Angeles came to an understanding that the three pairs of the Beats headphones that included the studio two wireless, the studio two re-mastered and the studio three were all having similar designs. The jury ordered Iovine and Dre to pay Stephen Lamar $25 million. Currently, the studio three headphones are still on sale. This meant that Stephen will still be receiving royalties in accumulation to the court-mandated payout.
The trial forced Iovine and Dre to testify on how the Beats Company was founded. It was a long story that the jury was keen to listen. The story was also featured in HBO documentary series that was named the ‘Defiant Ones’. The attorney to Stephen Lamar revealed that the court managed to see through their attempts to understand the role that Lamar played in the establishment of the organization. The attorney went on to say that Iovine and Dre were attempting to paint Stephen as someone who just popped up at the right time when the company was succeeding.