Apple to pay US$100m to Creative in settlement
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ST, Aug 24, 2006
SAN FRANCISCO - Apple Computer said it will pay US$100 million for a licence to use Creative Technology's patented technology in its iPod music player, settling all legal disputes between the two companies.
US-traded shares of Singapore-based Creative surged 25 per cent in extended trading following the announcement. Apple shares slipped 0.2 per cent.
Apple Chief Executive Steve Jobs said the agreement ends five lawsuits between the companies 'and removes the uncertainty and distraction of prolonged litigation'.
'Creative is very fortunate to have been granted this early patent,' he added.
Creative, the world's second-largest maker of MP3 music players after Apple, sued Apple in May alleging the California-based computer maker had infringed a patent on its 'Zen' player over technology for navigating through songs on the popular iPod digital music player.
Apple in June counter-sued, while Creative took the case to the US International Trade Commission and sought a permanent cease-and-desist order against Apple.
Settlement 'amicable'
Mr Jobs said further that the settlement 'resolves all of our differences with Creative.'
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 Sept 30, he said.
The settlement also allows Apple to recoup a portion of its payment if other electronics companies license Creative's technology.
Shares of Apple shed 28 cents to US$67.12 in extended trade after the settlement announcement. The stock had closed down 31 cents at US$67.31 in regular trading on Nasdaq.
Creative shares rose US$1.49 to US$7.50 in extended trading after closing down 5 cents at US$6.01 on Nasdaq. -- REUTERS, AP
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Singapore's Sim is good in the court,just like our Singapore leaders.
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Ouch.
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Good job man Ah Sim! An Ang Moh paying an Asian money!
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Sounds like the rich boyfriend paying pittance to the jilted girlfriend to get her off his back.
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Unexpected, thought Creative might end up paying. A nice ending to this case.
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Hmmm...
Creative has taken to suing others for profits- how pathetic.
Reminds me of our gov. -
what is wrong with that??Originally posted by ShutterBug:Hmmm...
Creative has taken to suing others for profits- how pathetic.
Reminds me of our gov.
ppl use yr things n didn't pay royalties, so it is time to get some money back -
What's so pathetic about that? Govt's interest in suing is different from Creative's interest. If Creative is suing some small fry potential company to crush them out of the ratrace, that's a different case.Originally posted by ShutterBug:Hmmm...
Creative has taken to suing others for profits- how pathetic.
Reminds me of our gov.
In this situation, Creative is taking on a behemoth against some odds to protect its interest and should be applauded. -
ye and morever creative was protecting its productsOriginally posted by JLennon:What's so pathetic about that? Govt's interest in suing is different from Creative's interest. If Creative is suing some small fry potential company to crush them out of the ratrace, that's a different case.
In this situation, Creative is taking on a behemoth against some odds to protect its interest and should be applauded. -
hahaha for people hate creative so much and brought Ipod...
YOU'VE PAID TO CREATIVE WHEN YOU BROUGHT IPOD.
tak tak tak
uncle sim : thank you very much -
wooooohooooo
singapore win!!!!1
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Originally posted by ShutterBug:Hmmm...
Creative has taken to suing others for profits- how pathetic.
Reminds me of our gov.
Not profits. That's not how the law works. It's called compensation or damages. -
wat's the potential sales figure for ipod? $100m is how many percent?
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okay, from now onward.. uncle sim also not need to sell the mp3 player untill so tired.
he can start the sue businese.. SONY...SUMSUNG.......next? -
obviously u din read and ur passing childish statementOriginally posted by kingofbeholder:okay, from now onward.. uncle sim also not need to sell the mp3 player untill so tired.
he can start the sue businese.. SONY...SUMSUNG.......next?
as said,apple was sued bcuz of much similarity in its products with creative mp3 -
Suing to recover profits is merely a short term gain. If Creative can't keep on innovating, they'll still go down in the long term.
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Apple has built a huge ecosystem for its iPod and with our upcoming participation in the Made for iPod program we are very excited about this new market opportunity for our speaker systems, our just-introduced line of earphones and headphones, and our future family of X-Fi™ audio enhancement products.
apple paying creative to be buddy with uncle sim for X-fi in ipod to fight over MS.
tak tak tak -
Guess they should ask Apple for a royalty fee or not accept the 100mil, cuz I believe the opportunity cost is way way higher for them to use it and cause Creative lost of business.
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see loh, i bet uncle sim is demantle all the product in the market and see what copyright he own.Originally posted by olala:obviously u din read and ur passing childish statement
as said,apple was sued bcuz of much similarity in its products with creative mp3 -
$100M is spare change to Apple. Apple just pay to move on and concentrate on doing business rather than engage in battling out in the court room, which would cost more in the longer term - other players coming in and chip away their market share. Recall the story of the stork and clam, in the end the fisherman gain.
Better for us consumer also, both companies can spend more on creating good products rather than paying those insanely rich lawyers. -
go singapore
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it not the money issue.Originally posted by moongster:$100M is spare change to Apple. Apple just pay to move on and concentrate on doing business rather than engage in battling out in the court room, which would cost more in the longer term - other players coming in and chip away their market share. Recall the story of the stork and clam, in the end the fisherman gain.
Better for us consumer also, both companies can spend more on creating good products rather than paying those insanely rich lawyers.
both know they will not settle easily if they continue playing court.
to me, in chinese, bu da bu xiang shi.
now they become friend. -
well done, creative!!
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I see this as Apple's preventive measure (To work with Creative) for the upcoming M$ MP3 player (Zune)...although we don't know how good the respond for M$ MP3 player (Zune), Apple should be prepared for a new guy invading their MP3 market...