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Topic: Apple Pays Creative Labs $100 Million To Settle Patent Suit

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  1. #1
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    Apple Pays Creative Labs $100 Million To Settle Patent Suit

    ExtremeTech reports:

    Apple and Creative Technology said Wednesday that they have settled all outstanding litigation between them, with Apple paying Creative $100 million for the use of a key patent.

    As a result, Creative will become a "Made For iPod" program partner, and the company said it plans a line of Apple iPod accessory products later this year. Interestingly, Apple can also recoup part of the Creative patent settlement if Creative is successful in licensing the patent to others.

    The agreement settles all five outstanding suits between the two companies, the most recent of which were filed in May and June of this year and concerned several audio-related patents. The most important, the so-called "Zen" patent, involved the software menus used to find and play back music on portable music players.

    "Creative is very fortunate to have been granted this early patent," said Steve Jobs, Apple's chief executive, in a statement. "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."
    Yes, you read right - ONE HUNDRED MILLION $DOLLARS$

  2. #2
    Senior Member BlueMax's Avatar
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    Re: Apple Pays Creative Labs $100 Million To Settle Patent Suit

    [groan] Oh no.....

    I'm already not a big Creative fan, but this only adds momentum to the CL gravy train.
    "AAAAUUUUGGHHHHHHH!!!!!!" -- Charlie Brown

  3. #3

    Re: Apple Pays Creative Labs $100 Million To Settle Patent Suit

    Yet another in the numerous examples of how the software patent system is out of control.

    Nobody really thinks Apple stole anything of substance from Creative. It was nothing but a couple of hierarchical menus in a text display. But Creative had a patent on it, so it cost Apple $100 million to end the matter.

    International patent law reform is overdue.
    Wheat Williams
    Atlanta, Georgia, USA
    Music Copyist in Sibelius
    Apple MacBook Pro, Mac OS X 10.8 Mountain Lion
    Apple Certified Support Professional. I also work with Windows.

  4. #4

    Re: Apple Pays Creative Labs $100 Million To Settle Patent Suit

    Remember Apple's patent infringement case against Microsoft in the 1990s?

    Apple sued Microsoft for creating the whole Windows operating system, which they alleged copied their prior creation, the Mac OS.

    Microsoft paid Apple $150 million to settle that one, and it was called an "investment of Microsoft in Apple" and a "cross licensing agreement".

    Ten years of operating system development, called into question, settled for $150 million.

    Now, ten years later, a patent for a couple of lines of text in a hierarchical menu structure, and it costs $100 million to make it right.

    I should have been a patent attorney. Mom, I apologize for going to music school instead.
    Wheat Williams
    Atlanta, Georgia, USA
    Music Copyist in Sibelius
    Apple MacBook Pro, Mac OS X 10.8 Mountain Lion
    Apple Certified Support Professional. I also work with Windows.

  5. #5

    Re: Apple Pays Creative Labs $100 Million To Settle Patent Suit

    I hear Microsoft has patented the vowels of the alphabet...
    and they're just waiting for the right time to spring it on us.

    Really, some of the things they allowed patents on are just
    plain ridiculous: many of these patents cover things so
    blatantly obvious that most any programmer would naturally
    think to do it that way.

    David
    www.DavidSosnowski.com
    .

  6. #6

    Re: Apple Pays Creative Labs $100 Million To Settle Patent Suit

    Analysts are saying Apple got off easy.

    100M is chump change for Apple, a day of sales of the ipod.

    Creative settled for a lump settlement, where they could have gone for a % of ipod sales in the future, as if they were credited for co-developing the ipod.

  7. #7

    Re: Apple Pays Creative Labs $100 Million To Settle Patent Suit


  8. #8
    Senior Member rpearl's Avatar
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    Re: Apple Pays Creative Labs $100 Million To Settle Patent Suit

    Quote Originally Posted by etLux
    I hear Microsoft has patented the vowels of the alphabet...
    and they're just waiting for the right time to spring it on us.

    Really, some of the things they allowed patents on are just
    plain ridiculous: many of these patents cover things so
    blatantly obvious that most any programmer would naturally
    think to do it that way.

    David
    www.DavidSosnowski.com
    .

    That's true, but they wouldn't pony up for the occasonally-used-as-a-vowel letter "Y". As I use a Mac, I guess it'll be Mycrsft for me from now on...

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