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Sapphire screen maker wants Apple contracts nixed
by Staff Writers
San Francisco (AFP) Oct 10, 2014


Bose and Beats end beef over headphone patents
San Francisco (AFP) Oct 10, 2014 - Audio technology veteran Bose Corporation and Beats Electronics on Friday called a ceasefire in a lawsuit over patented technology for canceling noise in earphones.

Lawyers for the companies asked a federal judge to dismiss the Bose lawsuit, saying the companies had settled their differences, without elaborating.

The suit filed in federal court in the US state of Delaware in July had set the 50-year-old firm against an Internet Age youngster bought by Apple in a deal valued at $3 billion.

"Bose brings this action against Beats to protect its valuable patented technology for noise-canceling headphones," the July complaint said.

Bose accused Beats of infringing on five of its patents for cutting out unwanted noise in headphones, particularly by cancelling it out with other sound waves.

The technology is referred to as active noise reduction.

Bose had called on the court to order Beats to stop using the patented technology and to pay unspecified damages.

The deal for the maker of high-end audio equipment and operator of a subscription streaming music service is Apple's largest acquisition ever.

It called for Beats co-founders Dr. Dre, a Grammy-winning hip-hop pioneer, and Jimmy Iovine, a veteran music executive, to join the California company.

Since launching five years ago, Beats has become a popular brand for audio equipment and has attracted the likes of Lady Gaga, Lil Wayne and Nicki Minaj, who have designed their own customized Beats headphones and speakers.

Beats was reported to have claimed 60 percent of the billion dollars spent on top-end earphones in the US last year.

A supplier enlisted to make sapphire screens for Apple mobile devices on Friday urged a bankruptcy court to free it from contracts it branded "oppressive and burdensome."

Sapphire touch screens are a very tough synthetic replacement for the glass currently used on many Apple mobile devices, and are already used in a limited way for particularly sensitive parts of devices.

The synthetic screens were also expected to be used in the Apple Watch and in some versions of the latest iPhones.

US-based GT Advanced Technologies (GTAT) "believes that it has many claims against Apple arising out of its business relationship," lawyers for the firm said in paperwork filed in US Bankruptcy Court.

"The agreements imposed oppressive and burdensome terms and obligations on GTAT."

GTAT also asked the court to let it wind down synthetic sapphire manufacturing facilities in two states to extinguish an "ongoing cash burn" that threatens to devour its liquidity.

GTAT argued in court documents that contracts benefiting Apple shifted the company's business model from primarily supplying sapphire-making equipment to being a sapphire materials manufacturer.

GTAT has formally filed for petitioned for bankruptcy protection, bringing into question where Apple would turn for its supply of sapphire touch-screens.

GTAT told the court that careful evaluation had led it to conclude that to protect its assets it needs to wind down sapphire facilities in Arizona and Massachusetts and eliminate supporting staff at its offices in New Hampshire.

Ending sapphire making operations was expected to mean the loss of 890 jobs, according to the legal motion.

Apple did not respond to an AFP request for comment but has been quoted in press reports as saying it was "surprised" by GTAT's decision to file for bankruptcy.

The GTAT group makes and supplies equipment and materials for the electronics, solar and LED light industries.

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