Monster is no longer allowed to make Made for iPhone products from Apple
Apple has stripped Monster’s right to make accessories for iPhones under the Made for iPhone program after Monster filed a lawsuit against Beats. Monster is now banned from making MFi certified cables and headphones.
Apple has canceled its agreement with manufacturer Monster for the Made for iPhone program on May 5. Lawyers allegedly informed Monster that the “relationship between the two companies was no longer in each other’s best interests”, citing the lawsuit against Beats. Monster sued Apple subsidiary Beats early this year for fraud.
Monster initially owned intellectual property on Beats headphones. Beats would protect the intellectual property of the Beats by Dr. Dre line of headphones, however, after buying back more than a quarter of HTC’s shares, while HTC previously owned 51 percent of Beats. Because this triggered a change-of-ownership clause, Monster lost its license and that would have cost millions in lost revenue.
With Monster also losing its license for the Made for iPhone/iPod/iPad program, it is no longer allowed to make Lightning cables and headphones that bear its logo. The sale of the accessories in Apple Stores will also stop. However, the Apple company is allowed to let the sale continue until September of this year. Monster has participated in the program since 2005. The company told The Wall Street Journal that 900 of its 4,000 products have been made for iPhone/iPod/iPad since 2008.