Details of the under wraps case surfaced online early Tuesday (April 8).
The new court papers show 50 Cent needs to pay $11.6 million in damages for misappropriation of trade secrets, unjust enrichment and breach of confidentiality; and another $4.4 million in legal fees and expenses. In a nutshell, here’s what happened: An arbitrator in West Palm Beach found that the rapper, whose real name is Curtis Jackson, stole design secrets from Bradenton manufacturer Sleek Audio to make his own headphones, Street by 50 and Synch by 50. (Miami Herald)
Reports also claim Fif has remained quiet about the loss despite its high-profile significance.
50 was walloped in arbitration last summer — and a federal court in Miami just affirmed the award to Sleek. The singer of Candy Shop and 21 Questions desperately tried to keep the award documents sealed, but the federal court unsealed them recently. So far, 50′s not talking, and neither are his lawyers. Through his company G-Unit LLC, Jackson and Sleek teamed up in early 2011 to market Sleek by 50, a line of wireless, over-the-ear headphones. (Miami Herald)
Reports of 50 and Sleek’s decision to part ways landed online in spring 2011.
In actuality, it was G-Unit that terminated a Brand Licensing Agreement that it had entered into with Sleek, which termination automatically triggered the termination of the earlier announced tri-party agreement. However, not long after the termination of the tri-party agreement, TV Goods and 50 Cent, via his affiliate company, SMS Audio, LLC, entered into a Term Sheet for the two parties to continue joint efforts to produce and distribute a direct response television infomercial to globally market a wireless over-the-ear headphone product offered or sold by SMS that is endorsed by and/or and bears the name of “50 Cent.” Sleek is not a party to that Term Sheet. (Yahoo News)