Strategy in TECH...
Bloomberg News reported late on Monday that Apple is dropping Sonos [NASDAQ: SONO] and other non-Apple branded products from their stores. The news of Sonos losing such a major customer caused their stock to derail in after hours trading, down almost 7% in value at one point. On Tuesday, Sonos stock price closed down 3.2% as Wall Street digested the news.
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.
Monster, Inc. (formerly Monster Cable) announced this week that it is launching its first ever television ad during the NBC broadcast of Super Bowl LII this Sunday, February 4. Usually the biggest TV event of the year, Super Bowl commands a king’s ransom in fees for advertisers, reportedly $5 million for a 30-second spot according to Sports Illustrated. Monsters ad? A full 60-second spot.
While you were drinking your eggnog or otherwise enjoying your holidays, the Grinch stole all the good cheer from Monster LLC and owner Noel Lee when a jury in the case of Monster LLC v. Beats, et al agreed with Beats and ordered Monster and Lee to pay them $7,916,201.64 as reimbursement for their legal expenses.
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.
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.
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.
As the 2015 International Consumer Electronics Show (CES) kicked off yesterday in Las Vegas, attorneys for Monster, LLC and owner Noel Lee were busy filing a lawsuit in a California Superior court against Beats Electronics, LLC, Andre Young (Beats founder better known as Dr. Dre), Paul D. Wachter (a Beats director), Jimmy Iovine (Beats founder), and HTC (a Taiwanese company that allegedly at one time owned a majority interest in Beats). Multiple published reports carried the rather salacious claims by Monster and “Head Monster” Noel Lee about the allegedly nefarious business practices of Beats, its founders, certain directors, and some of its partners.
