Source: BusinessInsider.com
Jimmy Iovine – the co-founder of Interscope Records – and Dr. Dre, the infamous rapper and producer, as well as the founder of rap pioneers, NWA, may have to give up a solid chunk of money to their former business partner.
On Wednesday, a Los Angeles court and jury delivered a defeat for Dr. Dre and Jimmy Iovine when they found that their former business partner, Steven Lamar, was ripped off millions of dollars for royalties for his contribution to Beats headphones.
The jury found that Lamar deserves at least $25.2 million in royalties, as well as ongoing royalties related to the sale of Beats Studio3 headphones. Stephen Morrissey, the attorney-at-law for Lamar, said to Daily News that he would receive approximately $25 million.
Morrissey said they were happy with the result because they got the jury to consider important details that validated their case. Mr. Lamar was entitled to royalties due to his contribution to the design of the product.
Dr. Dre and Jimmy Iovine have to pay back Steven, along with Apple, who bought Beats for $3 billion in cash as well as stock in Apple Inc. back in 2014.
On Wednesday, Morrissey said they are all responsible for what happened to his client. He added, “obviously, they’re good for the money.” He joked that he doesn’t think that any of the men in the suit will have to sell their homes to compensate Mr. Lamar.
Neither the lawyer for Dre, Iovine, or Apple have responded to requests for remarks. Nevertheless, Morrisey expects them to appeal the verdict. He added that the entire affair has been a 4-year battle and he doesn’t expect them to drop their defenses.
As you may know, Dre Beats are easily the most popular headphones on the planet right now, making Dr. Dre the most financially successful man in hip-hop, along with P. Diddy – or Sean Combs.
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