Apple Revokes Monster's 'Made for iPhone' License Following Beats Lawsuit

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jun 16, 2015.

  1. MacRumors macrumors bot

    MacRumors

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    Apple has suspended audio accessory maker Monster's right to make licensed accessories for Apple devices following a lawsuit Monster filed against Apple-owned Beats Electronics in January, reports The Wall Street Journal.

    Monster produces Lightning charging cables and headphones that are certified to work with Apple devices under Apple's Made for iPhone (MFi) certification process, and it has done so since 2005. As of May 5, Apple is ending its agreement with Monster and will no longer allow the company to make MFi certified accessories.

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    Monster's lawsuit accused Beats Electronics, Beats co-founders Jimmy Iovine and Dr. Dre, and HTC of conspiring to acquire Monster's portion of Beats Electronics through a fraudulent deal. Well before Beats Electronics was bought by Apple, Monster designed and sold Beats by Dr. Dre headphones. That ended in 2011, after Beats sold 51 percent of the company to HTC and invoked a change of ownership clause in the Beats/Monster deal.

    Beats Electronics later repurchased HTC's stake in the company and convinced Monster CEO Noel Lee to sell a portion of his 5 percent stake as well. According to Lee, this was a "sham transaction" designed to exclude Monster from profits from Beats by Dre sales and later, profits from the Apple acquisition, which would have been more than $100 million had he retained his stake in the company.

    With Apple ending its MFi agreement with Monster, Monster will be required to change its packaging and rework some products that use licensed technology. The headphones in the image above, for example, are described as including Apple ControlTalk® microphone, music, and volume control. Apple is permitting Monster to continue to sell accessories through September, but the company is not allowed to produce new MFi-certified cables and headphones.

    According to Monster, 900 of its more than 4,000 products produced since 2008 have been made under the MFi program, and the company has paid out more than $12 million in licensing fees since that date. Monster lawyer David Tognotti says the move is excessive and "shows a side of Apple that consumers don't see very often." "Apple can be a bully," he said.

    Article Link: Apple Revokes Monster's 'Made for iPhone' License Following Beats Lawsuit
     
  2. Goldfrapp macrumors 601

    Goldfrapp

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  3. MacNut macrumors Core

    MacNut

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    You would think Apple would want someone else making over priced cables.
     
  4. Kaibelf macrumors 68020

    Kaibelf

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    You really think you can call mom fat and ugly, and still expect her to keep cooking your dinner? Sorry, Monster. Cry all you want, but at the end of the day, you overplayed your hand, so now you can't come to the party anymore. I wonder though, does this whiny lawyer have anything to say about Monster's ridiculous ~80% markups?
     
  5. farewelwilliams macrumors 68020

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    #5
    Wow. One company that makes extremely overpriced products




    is revoking the license.
     
  6. MacNut macrumors Core

    MacNut

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    To be fair, how much is Apple charging for over priced Beats headphones.
     
  7. johnnyturbouk macrumors 68000

    johnnyturbouk

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    never liked monster accessories, especially cables or headphones, far too overpriced imho. Their headphones were pretty average in performance, for a huge premium.
     
  8. DCJ001 macrumors 6502

    DCJ001

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    #8
    "Monster produces Lightning charging cables and headphones that are certified to work with Apple devices under Apple's Made for iPhone (MFi) certification process, and it has done so since 2005"

    2005? Are you sure that the Made For iPhone certification process was in place two years before the iPhone was on sale?
     
  9. KernelG, Jun 16, 2015
    Last edited: Jun 16, 2015

    KernelG macrumors member

    KernelG

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    #9
    "Apple can be a bully," says the company that has threatened to sue everyone on the planet who also uses the word "monster", including Hanna Barbera for old episodes of Scooby-Doo. (Not joking.)
     
  10. tills24 macrumors member

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    Funny how a company that sells $6 cables for $100 because of the logo on the cable is mad at being screwed out of money.
     
  11. chucker23n1 macrumors 68020

    chucker23n1

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    Yes. The program was launched in January 2005. That it was called Made For iPod then is largely irrelevant.
     
  12. MacNut macrumors Core

    MacNut

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    #12
    What company are you talking about? Apple or Monster?
     
  13. OldSchoolMacGuy Suspended

    OldSchoolMacGuy

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    But who will we buy $500 iPhone charging cables from now?!
     
  14. hmark8 macrumors regular

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    Don't see how Apple is being a bully, "Monster" is suing Apple. Clearly if you punch someone, the other person is going to punch back or walk away. In this case Apple is walking away from the relationship. Monster needs Apple's business far more than Apple needs Monster so they should have dropped the suit or be prepared to deal with the consequences.
     
  15. bawbac macrumors 65816

    bawbac

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    #15
    They said it would take something big to bring down Apple and they were right... It's going to take a Monster...
     
  16. Tucom macrumors 65816

    Tucom

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    #16
    Reference your avatar after reading this. Lol.
     
  17. oliversl macrumors 65816

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    I don't think thats ethical from Apple. MFI licensing should be open
     
  18. Morod macrumors 68000

    Morod

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    #18
    Monster and Beats. Two companies I don't ever plan on doing business with.
     
  19. aloshka macrumors 65816

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  20. Arndroid macrumors 6502a

    Arndroid

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    It is open, to people who meet the standards and are not suing apple employees and apple owned companies.

    Hardly an unreasonable threshold to openness.
     
  21. mysterydate macrumors 6502

    mysterydate

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  22. aloshka macrumors 65816

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    What if they just said something bad about Tim Cook.. Should they terminate contract then? What if they sneeze and apple didn't like it?

    What Apple did is 100% opposite of what Open means.
     
  23. dannyyankou macrumors G3

    dannyyankou

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    #23
    Does anyone actually own and use Monster headphones?
     
  24. bsolar macrumors 6502a

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    #24
    That's exactly why Apple is being described as a bully. You propose that Monster should drop the lawsuit to avoid consequences from Apple but the lawsuit could be actually perfectly justified, so why should Monster drop it? Because Apple is trying to bully them into doing so through the strength of its business.

    Not saying that Apple should not do that: in my opinion Monster deserves every ounce of the bullying Apple can deliver.
     
  25. aloshka macrumors 65816

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    No because they cost too much lol. I don't think it's about that, it's about the darker side of apple.
     

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222 June 16, 2015