Apple pays Creative US$100m, patent disputes settled

Apple CreativeApple and Creative Technology have settled the patent disputes and Apple agreed to pay Creative Technology US$100m. Creative also announced that it has joined Apple's "Made for iPod" program and will introduce its own iPod accessories later this year.

The US$100 million is for a paid-up license to use Creative's patent for an MP3 player interface, however, Apple can recoup a portion of that money if Creative successfully licenses its patent to other companies.

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"Creative is very fortunate to have been granted this early patent," said Apple CEO Steve Jobs said in a press release. "This settlement resolves all of our differences with Creative, including the five lawsuits currently pending between the companies, and removes the uncertainty and distraction of prolonged litigation."

"We're very pleased to have reached an amicable settlement with Apple and to have opened up significant new opportunities for Creative," said Sim Wong Hoo, chairman and CEO of Creative, said in the same press release. "Apple has built a huge ecosystem for its iPod and with our upcoming participation in the Made for iPod program we are very excited about this new market opportunity for our speaker systems, our just-introduced line of earphones and headphones, and our future family of X-Fi audio enhancement products.

For the press release:
Apple & Creative Announce Broad Settlement Ending Legal Disputes Between the Companies (Apple Press Release, 24 Aug 2006)
Apple & Creative Announce Broad Settlement Ending Legal Disputes Between the Companies (Creative Press Release, 24 Aug 2006)


Posted by Antony at August 24, 2006 1:48 PM

>> more MacCentre701 August 2006 reports.