Facts

Pentagram Design Inc. and its successor-in-interest, Hinrichs & Associates, a design firm that was assigned Pentagram's rights, sued Steven Lamar, Jibe Audio, Beats Electronics LLC, Dr. Dre and Jimmy Iovine, for declaratory relief as to whether additional royalties were owed under a contract relating to Beats headphones.

Lamar filed a cross complaint for breach of contract against Beats Electronics, lovine and Dr. Dre and for breach of fiduciary duty and tortious interference with contract against Robert Brunner and Ammunition.

PLAINTIFF'S CONTENTIONS: Lamar contended that Iovine, Dr. Dre and Beats Electronics breached the terms of a prior settlement agreement where they agreed to pay Lamar royalties on Beats headphones. Lamar contended that Beats' subsequent headphone models were covered by the royalty agreement.

DEFENDANTS' CONTENTIONS: Defendants contended that the deal only covered for one product and Lamar was already paid for that product.

Damages

Plaintiff asked the jury to award $120 million in past due royalties for 12 headphones products.

Result

Pentagram, Hinrichs & Associates, Lamar and Jibe Audio settled. The matter proceeded with Lamar's cross-complaint against Beats Electronics, Iovine and Dr. Dre. The jury found that defendants breached their duties under the agreement. It also found that Lamar was owed royalties in the amount of $25,247,350.

Other Information

The court subsequently ruled that Beats owed ongoing royalties, pre- and post-judgment interest, and attorney fees, resulting in a proposed judgment, which has not been entered yet, totaling more than $44.9 million. The jury awarded royalties on only three of the 12 headphones products.