Apple-owned Beats (acquisition isn’t complete yet) is being sued by its rival Bose for infringing patents on noise-cancellation technology and has sought damages in court.
Bose claimed that Beats had infringed five patents that cancels noise in earphones and has caused great loss due to low sales. Beats Studio and Beats Wireless headphones were the products that use the technology. Bose is also trying to stop the import of Beats earphones, costing $100, into the US that are made by Fugang Electronic in China.
“To protect its investments, Bose has sought patent protection and owns many patents and patent application,” said Bose attorneys in a statement. In an official statement provided to TechCrunch, Bose official said:
The filing is comprehensive and explains our position, and as a matter of practice, we don’t comment on on-going litigation. We can share that for over 30 years, Bose has made significant investments in the research, development, engineering and design of the proprietary technologies found in our headphones. Bose’s patented technologies enable the exclusive performance found in our QuietComfort® Acoustic Noise Cancelling® headphones. We are committed to protecting our investment, protecting our customers, and defending the patents we own.
The company will carry out the case through Delaware district court, though the judge for the case has not been appointed yet. Beats declined to comment on the filing. Bets mentioned that it had heavily in research and development of the technology and is committed to protecting its patent rights. Bose is seeking damages for violation of noise-cancellation patents.
Bose has chosen to sue Beats after Apple’s $3 Billion acquisition that could provide the company with a huge amount in damages, if the court favors the company. If Bose wins, Apple would have to pay the complete courtroom fees, halt the earphone sales and use of noise-cancellation technology. However, Apple has a strong legal setup in place that could dash the hopes of Bose winning lucrative damages. Also, Apple has enough courtroom experiences with rivals Samsung and other leading smartphone makers for patent violations.
After so many days of rumors and doubts, In last May, Apple CEO Tim Cook announced in his letter that Beats Music and Electronics will be acquired for $3 billion which will also be the company’s biggest acquisition.
Beats was launched in 2008 by hip-hop artist Dr. Dre and Jimmy Iovine, Chairman of Interscope Geffen A&M Records and their electronics is popular among sports and celebrities. Apple is all set to benefit from the deal as the company’s in-car entertainment CarPlay will be released this year with high-end audio in CarPlay consoles. Beats Music, a music streaming service which has about 200,000 users will be an addition to the company along with Apple’s iTunes and will compete with apps like Google Play Music and Pandora.