Apple removes cable maker Monster from MFi program in wake of Beats lawsuit
Electronics maker Monster is no longer allowed to manufacture licensed "Made for iPhone" accessories and must stop selling its current stock by October, having been booted from Apple's certification program following a January lawsuit against Apple subsidiary Beats.
Monster was informed of Apple's decision last month, according to the Wall Street Journal. The license was reportedly withdrawn because a tie-up between the two firms was "no longer 'mutually beneficial.'"
Monster sued Beats in January of this year, alleging that Jimmy Iovine and Dr. Dre essentially stole Beats from Monster and its CEO, Noel Lee. Monster designed the first iterations of Beats headphones, and manufactured many of the early models.
Through the suit, Monster and Lee are seeking putative damages. They argue that Lee's stake — Â which was at five percent as late as 2013 before being drawn down to nothing — should be worth at least $100 million following Apple's $3 billion acquisition of the company.
Monster general counsel David Tognotti told the Journal that his firm's business would be substantially impacted by the revocation of its Apple license, saying that nearly 25 percent of its products were manufactured under the MFi program, trigger to more than $12 million in license payments to Apple since 2008.
"It shows a side of Apple that consumers don't see very often," Tognotti told the paper. "Apple can be a bully."
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