Bose Corporation Suing Apple Inc (AAPL)’s Beats Electronics over Patent Infringement


Apple Inc (NASDAQ:AAPL) acquired Beats Electronics LLC in a deal worth $3 billion earlier in May.  Through this acquisition, the Beats’ product line might be offered in more countries through Apple online stores, Apple retail stores and Apple authorized resellers. Meanwhile, Bose Corporation has filed a patent-infringement lawsuit against Beats Electronics to block US imports of Beats noise-cancelling headphones. Josh Lipton has talked on CNBC about this development.

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Lipton reported that Bose Corporation has filed a lawsuit against Beats electronics over patent infringement. He added that Bose Corporation claimed the patent infringement by Beats electronics for their noise cancelling headphones. He also said that Bose Corporation has over 36 US patents on noise cancelling headphones. “Of course, you are really taking on Apple here as well, Apple is buying Beats for $3 billion,” Lipton said.

Liptopn feels that Bose Corporation is directly taking on the Apple Inc (NASDAQ:AAPL), since Apple had already announced their takeover of Beats Electronics. Beats’ subscription music service will also be acquired by Apple Inc (NASDAQ:AAPL), but only the headphones manufactured by Beats Electronics comes are in the middle of Bose Corporation’s patent infringement case. According to the National Purchase Diary (NPD), Beats electronics dominates the high-end sector headphones market for quite some time.

Bose Corporation was working on noise cancelling technology for almost four decades and started selling their ‘QuiteComfort’ headphones with this technology from 2000. Technology in their latest patents involves the use of the sound waves to cancel out the unwanted noise, which they claimed as the infringement by Beats.

Apple Inc (NASDAQ:AAPL)’s deal to acquire Beats is pending regulatory approval. If the deal goes through, Bose’s lawsuit would be another litigation to handle for Apple, in addition to the ongoing patent battle with Samsung.

Disclosure: None

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