apple to pay $100 million to creative

August 23rd, 2006 comments stumble it! digg it! by: technabob

Apple and Creative Technology, Ltd. today announced a broad settlement ending all legal disputes between the two companies.

Apple will pay $100 million to license Creative’s patent in all Apple products. Apple can recoup a portion of its payment if Creative is successful in licensing this patent to others. In addition, the companies announced that Creative has joined Apple’s “Made for iPod” program and will be announcing their own iPod accessory products later this year.

Creative filed a lawsuit back in June, alleging that Apple’s popular iPod media players infringed on its patent for the system used to navigate and play music on its Zen media players.

Sim Wong Hoo, chairman and CEO of Creative stated that the $100 million will result in approximately $0.85 in extra earnings per share in the current fiscal quarter. On news of the agreememt, Creative’s stock rose sharply (up about 33%) in after hours trading.

filed under:  media players

August 23rd, 2006 comments: stumble it! digg it! by: technabob