Dr.Dre, Jimmy Lovine Face Royalties Claim From Beats Headphone Co-Founder

Steven Lamar, the man who helped create Beats Headphones, has filed a complaint against Dr.Dre and Jimmy Lovine claiming a breach of contract and demands for as much as four percent of royalties be paid on headphone sales.

In the claim, Lamar states that he was president of SLS International when he  pitched the concept of a celebrity musical artist endorsed headphones to Ivine, the co founder of Interscope Records in 2006.

“Lamar’s concept envisioned a partnership between technology that would provide a superior audio experience and an iconic product design and brand identity promoted by a well-known and respected music artist,” says Lamar’s cross-complaint. “Iovine proposed that Dre be the celebrity musical artist to endorse the headphones.”

The complaint went on to say that Lamar had engaged Pentagram, a firm to help design the line of headphone, where he worked with a man named Rober Brunner. Lamar states that he partnered with a Chinese manufacturer and in May 2006, was introduced to Jerry McDougal at Apple.

Foreshadowing the Beats-Apple partnership, the cross complaint continued, “The proposal was to sell Beats Headphones in Apple Stores. McDougal was as interested in the Beats Headphones that he introduced Lamar to Don Inmon of Apple who was responsible for product placement in store.”

In the end, Lamar chose to go with Monster, LLC as its distribution partner and according to legal filings, Iovine and Dre were to get a 20 percent royalty and Lamar and Jibe five percent royalty

In July of 2006, Iovine and Dre filed a lawsuit against Pentagram, Lamar, Jibe and SLS over the headphones. In the suit, defendants were accused of failing to comply under contract and intending to come out with their own version of Beats Headphones without the involvement of Dre.

In January, Hinrichs & Associates, a tax and auditing firm, filed a lawsuit against Lamar claming that he not only wanted royalties on one version of the headphone, but “substantially similar,” versions.

So now, Lamar is suing Iovine, Dre, Beats, Pentagram and H&A for breaching the terms of the settlement and royalty agreement. The self-professed founder is also suing the same parties for bad faith denial of contract, suing Brunner and Pentagram and H&A for breach of fiduciary duties, and suing Burner for tortious interference for allegedly inducing Iovine, Dre and Beats to renege on contractual obligations made eight years ago.