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Earlier this year, Apple announced a 3 billion dollar takeover of the Beats headset and Beats Music VOD service, which will be completed later this year. Now Beats headphones are suing many Chinese Shanzhai headphones, claiming that many Chinese shanzhai headphones violate the Beats trademark and claim billions of dollars ...
In the filing, Beat mentions that many online stores sell unlicensed or shanzhai beats products that use beats trademarks. Shanzhai Beats headphones are low priced and are usually sold to consumers who do not know.
Beats's lawyers point out that Shanzhai beats headphones are a complex closed-loop business model that maximizes profits while avoiding being discovered by law enforcement agencies. These shanzhai Beats headphones are reviewed by the U.S. Customs and Border Protection Agency via an international mail approach. Data show that Shanzhai beats headset's annual revenue can reach 135 billion dollars. Beats also wants the domain registrar to confiscate all the domain names of the infringing Shanzhai beats Company and give it to the real beats company.
It is not yet known what beats hope to get from the lawsuit, believe that China's shanzhai beats headphones will not compensate for billions of of dollars. In 2013, Beats filed a similar lawsuit, eventually obtaining 1472 domain names, 50 PayPal accounts and 14 online trading accounts.