Apple pays up for Creative writing

Apple on Wednesday agreed to fork over $100 million to Creative Technology, settling a patent dispute between the two companies.

Creative sued Apple in May, claiming the iPod interface infringed on several patents it owned; Apple countersued that same month. Following the settlement, Creative will become part of Apple's Made for iPod program as an authorized seller of iPod accessories. The comapny wouldn't comment on whether it has entered discussions with other companies about licensing.

Apple didn't comment on the merit of Creative's case, but did compliment the company's timing.

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

Blog community response:

"This seems to be about rewarding the loser in the marketplace. Creative failed to make a music device that the market liked as much as Apple's -- suggesting that, for whatever innovation they had created, it wasn't what drove the market. And, for that, they get to take $100 million from the company who did successfully figure out what the market wants."
--TechDirt

"Still, gotta love the vaguely optimistic spin Jobs put on the sitch: 'Creative is very fortunate to have been granted this early patent...' Yeah, we'd say you're damned right, Steve."
--Engadget

"Even in defeat, Apple is petty. I can't believe this type of thing doesn't offend more people. Instead, some kid living in his parent's basement will write an overly long article about how Apple actually invented the iPod user interface back when it created the Lisa, or something equally insane, and Apple fanatics the world over will rally around this revision of history. Sigh."
--Paul Thurrott's Internet Nexus