SAN FRANCISCO : Apple Computer announced on Wednesday it would
pay Singapore-listed Creative Technology US$100 million to settle a
dispute over patented technology used in iPod and Nano MP3
players.
The deal ended a budding legal battle that began earlier this month
after Creative was awarded what it referred to as a "Zen patent" on
technology used to select and sort songs in its Zen MP3
player.
Creative went to US court, and the US International Trade
Commission, to accuse Apple of infringing on its patent by using
the technology in iPod and Nano players.
"Creative is very fortunate to have been granted this early
patent," Apple chief executive Steve Jobs said in a
statement.
"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."
Apple would pay Creative 100 million dollars for a license to use
the technology and would be able to recover some of the money if
Creative licensed the patent to others, according to the
companies.
Under the terms of the settlement, Creative, an Apple rival in the
MP3 player market, would also begin marketing its own line of iPod
accessories as part of Apple's "Made for iPod" program.
"We're very pleased to have reached an amicable settlement with
Apple and to have opened up significant new opportunities for
Creative," said Creative chairman and CEO Sim Wong Hoo.
"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."
Creative expected the licensing windfall to boost its current
fiscal quarter earnings by 85 cents per share. - AFP/ch
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