Apple settles Creative patent lawsuit

— 2:04 AM on August 24, 2006

Just over three months after Creative hit Apple with a patent infringement lawsuit, the iPod maker has opted to throw in the towel and settle out of court for $100 million. Through the settlement, Apple has gained a license for the so-called "Zen Patent" that sparked the lawsuit. Apple is also dropping the countersuit it filed shortly after Creative's initial legal action. In its countersuit, Apple accused Creative of violating no less than seven Apple patents relating chiefly to user interface design.

Interestingly, the settlement also has Creative entering the "Made for iPod" program to become a reseller of iPod accessories. Creative plans to "speak with other MP3 player companies" about the Zen Patent, as well. Apple will reportedly get some of its $100 million back if Creative can secure licensing deals with those other companies.

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