Monster is accusing Apple of acting like a "bully" after the company terminated the licensing deal that for years has allowed Monster to manufacture authorized accessories for iPhone, iPad, and iPod products. Per The Wall Street Journal, Monster claims that the broken pact is the direct result of its own lawsuit targeted at Beats Electronics, which Apple acquired last May.
Monster's complaint in the still-pending case alleges that Beats co-founders Dr. Dre and Jimmy Iovine slowly cut out Monster, which once handled manufacturing for Beats headphones, as the $3 billion deal with Apple neared. The lawsuit revolves around a change-of-ownership clause that was triggered when Beats purchased back its own shares from HTC, which Monster slammed as a "sham transaction."
Now Monster says that Apple is playing hardball over the coming legal battle and abruptly putting an end to a years-long relationship between the companies. According to the Journal, Monster believes the move will "significantly disrupt" its business; approximately 900 of Monster's 4,000-plus products are part of Apple's MFi program (short for "Made for iPhone / iPad / iPod").
The company's accessories have mostly consisted of licensed cables, car chargers, cassette adapters, and other items; Monster has also long carried a reputation of hawking overpriced products. Monster may continue selling its existing MFi products through September but is forbidden from manufacturing new ones. The company insists that Apple is going too far by ending their agreement, particularly since, in Monster's own words, Apple "inherited" the fight by purchasing Beats. "It shows a side of Apple that consumers don’t see very often," David Tognotti, Monster’s general counsel, told the Journal. "Apple can be a bully." Tognotti revealed that Monster has paid Apple $12 million in MFi licensing fees since 2008.