Apple Settles with Creative in iPod Patent Dispute
In what could perhaps be a sigh of relief for iPod addicts, podcasters and podvertisers, Apple agreed today to pay Creative Technology $100 million to settle a dispute over the patent of the user interface of the iPod music player.
Creative filed two lawsuits against Apple in May, saying that the user interface for the iPod, the iPon Nano and the iPod Mini infringed on a patent for the Creative Zen and Creative Nomad players, and that the import of those players into the U.S. was a violation of U.S. tariff law. Apple then filed two countersuits. In June, at Creative’s request, the International Trade Commission opened an investigation into the patent dispute.
“Creative is very fortunate to have been granted this early patent,” said Steve Jobs, CEO of Apple 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.”
The $100 million going to Creative is a one-time licensing payment for the existing iPod interface. Apple also announced that Creative has joined its “Made for iPod” program, and Creative will begin making iPod accessories towards the end of this year.
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