Apple and Creative Technology Ltd. have announced an agreement to settle all legal disputes between the two companies. Apple will pay Creative $100 million for a license to use a patent recently granted to Creative in all Apple products.
Apple will recover a portion of this amount if Creative licenses this patent (the “Zen patent” for a user interface for portable media players – ed. note) to other entities. Furthermore, the companies announced that Creative will join Apple’s “Made for iPod” program and will introduce a range of its own accessories for iPod products later this year.
– Creative has been very successful in obtaining this patent – said Steve Jobs, Apple’s CEO. – This agreement resolves all our disputes with Creative, including five ongoing proceedings, and eliminates the uncertainty associated with prolonged legal disputes.
– We are very pleased with the amicable settlement with Apple as well as the opening of new opportunities for cooperation for both companies – said Sim Wong Hoo, Chairman and CEO of Creative. – Apple has created a huge market for iPod products, and our participation in the “Made for iPod” program will open up new sales opportunities for Creative speakers, new earphones and headphones, as well as future products using X-Fi™ technology, which improves sound quality.