Koss Violated NDA of Its Own ‘Insistence’ When It Sued Apple: Complaint

Koss breached a confidentiality agreement of its own “insistence” when it sued Apple three weeks ago for allegedly infringing five Koss wireless headphone patents, said Apple Friday. Its complaint (in Pacer) in U.S. District Court in San Jose also seeks a declaratory judgment of noninfringement. Koss initiated talks three years ago to woo Apple into licensing the patents for use in AirPods and Powerbeats Wireless products, said Apple. “Despite Apple’s request that all discussions be conducted without restriction,” Koss insisted on a nondisclosure agreement as a precondition, it said. The NDA they signed in August 2017 barred either company from using the talks as the basis for bringing legal action, it said. “Having enticed Apple to participate in discussions, reveal information, and forego some of its legal options, Koss could not use Apple’s participation against it as a ‘gotcha’ to bring claims in a later litigation. That, however, is exactly what Koss did.” U.S. Magistrate Judge Susan van Keulen recused herself from the case, directing in an order Monday that the court assign it to another judge. The patents Apple allegedly is infringing represent significant Koss investment “into the wireless headphone and wearable technology space, including its commitment in the form of decades of research and millions of dollars,” said Koss' July 22 complaint in U.S. District Court in Waco, Texas. Koss informed Apple of the infringement allegations before filing the lawsuit, it said: “Nevertheless, Apple has not taken a license.” Koss didn’t comment Monday.