Apple settle with Creative over patent use in iPods

September 2006


Apple have agreed to pay Creative Technology $100 million to settle a digital music patent dispute between the two companies with Apple now licensing the technology owned by Creative, allowing them to continue manufacturing iPods. Under the settlement Creative will also now be allowed to produce accessories for iPods, giving it access to a far larger number of consumers than it could have reach with its Zen and Nomad digital music players. Creative’s share price surged 38% after the news, although the long-term competitiveness of their players vs Apple’s is still somewhat uncertain.

Added comment from FiveEight magazine

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