Apple's $131m iPod patent settlement

[KiwiCoromandel]

Apple Computer Inc will pay $US100 million ($A131 million) to rival Creative Technology Ltd to settle patent lawsuits over technology for navigating through songs on the popular iPod digital music player, the companies said today.

The settlement allows Cupertino, California-based Apple to recoup a portion of its payment if other electronics companies license Creative's technology.

In June, the US International Trade Commission agreed to investigate whether Apple's iPod infringes on one of Creative's patents. Singapore-based Creative filed the ITC complaint and a federal lawsuit, alleging that iPods infringed on its patent for a navigation system used to organise and access music on its Zen media players.

In the ITC complaint, Creative asked the agency to block imports of the Cupertino-based company's market-leading iPods, which are manufactured abroad.

In court documents, Apple has maintained no wrongdoing and has since filed two patent-infringement counter-suits against Creative.

"Creative is very fortunate to have been granted this early patent," said Steve Jobs, Apple's CEO.

"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."

Creative Chairman and CEO Sim Wong Hoo called the settlement "amicable".

The one-time licensing payment would add 85 cents per share to Creative's earnings in the current quarter, which ends September 30, he said.

source:AP

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