Strategy in TECH...
This long and complex series of intertwined legal actions between Monster LLC (and all other Monster related parties) and Beats Electronics LLC (and all other Beats related entities) seemed to be winding down. Back in 2016, I reported on the lower court ruling in favor of Beats who had filed several motions for summary judgment. It seemed as though this was the end, but in 2018, more actions ensued.
When we last visited this legal clash of the titans, a jury had just found that Monster must pay Beats nearly $8 million to reimburse them for the legal expenses in fighting the lawsuit that Monster had brought against them in 2015. Now, we have learned that the judge in that case has increased the judgment with an additional “directed” verdict. And in the matter of a separate case, Beats vs. Monster filed late last year, Monster has filed a countersuit and won a key ruling.
The fat lady hasn’t sung yet, but it’s pretty much all over for Monster LLC and Noel Lee’s lawsuit against Beats Electronics LLC, Andre Young (a/k/a Dr. Dre), Jimmy Iovine, Paul D. Wachter (a Beats director), HTC America Holding, Inc and Does 1-25 (defendants to be named later). LA Superior Court Judge William F. Fahey has dismissed Monster’s lawsuit in its entirety, and has scheduled a trial that is now only on the claims by the defendants against Monster for attorneys fees and other costs.
Tidal, the high quality music streaming service purchased by rapper Jay Z one year ago, is said to be adding movie streaming to their service, Page Six (part of the New York Post) reported yesterday. According to the report, Tidal has already notified Apple that it intends to add movie streaming to its app, formally starting the required approval process.
Tidal has had an exceptionally challenging year, with three CEOs in nine months. Will opening up to competition on a movie service make things better?
It’s been ten months now since Beats Electronics, LLC won their motion to transfer the lawsuit brought against them by Monster, LLC, from San Mateo courts up in Northern California to their home turf of Los Angeles – a big win that reduces their costs and increases their comfort. But if Beats thought that their hometown courts would give them an advantage by being more favorable to their position in this case – they got a rude awakening earlier this month, when the LA judge offered a mixed ruling on several issues that mostly went against Beats’ desires.
If I were Jay Z’s publicist, I’d be nervous right now. The popular rapper’s reputation as a savvy businessman is in serious jeopardy. Billboard, one of the oldest and most prominent music industry publications, has recently launched a new annual survey of the top “A-list music business professionals.” In order to capture their honest opinions, the survey is conducted on an anonymous basis. While not exceptionally detailed or deep, the survey is meant to cover a “broad range of temperature-taking topics.”
The results of this inaugural effort offered some surprises – including the fact that more than 7 out of 10 of these top music industry executives predict that the Tidal music streaming service won’t survive its first year – a remarkable no-confidence vote in Jay Z, Tidal’s owner.
Just days after Apple, Inc. announced its plans to attempt to reassert its leading role in the music distribution and streaming businesses, we learn from the New York Times that two powerful state attorneys general in New York and Connecticut have launched an investigation into Apple’s music licensing practices. The purpose of the investigation is to determine if Apple has broken any antitrust laws in cutting deals that allegedly restrict music industry providers from offering their content on a free basis with other services.
As many regular readers know, Strata-gee has been closely following the litigation between Monster, LLC and Beats Electronics, LLC. Although the matter is really just getting started, it appears to be getting really ugly, really quickly. Now we have learned that Apple, Inc. has taken several actions that, according to Monster CEO Noel Lee (who is known as the Head Monster), are pure retaliation over this lawsuit – even though Monster did not sue Apple.
We first told you about Monster, LLC and CEO “Head Monster” Noel Lee filing a lawsuit against Beats, LLC alleging fraudulent practices back in January, in a post that was titled in part “Risky Business.” Perhaps now Monster is getting a taste of the riskiness of taking matters to court as they have lost their first battle, on the first issue – where the case would be heard.
We reported to you in January that Monster, LLC and Noel Lee had filed what appears to be a major lawsuit against Beats Electronics, LLC, Andre Young (Beats founder, aka Dr. Dre), Paul D. Wachter (a Beats director), Jimmy Iovine (Beats founder) and HTC (a Taiwanese cell phone manufacturer). The wide ranging suit alleged all sorts of nefarious business practices by the Beats parties – but especially alleged that Beats and HTC engaged in a “sham transaction” solely for the purpose of triggering a “change of control” provision to defraud Monster and Lee out of their rightful interests.
