Apple dodges a missle, not just a bullet

[landusepbb]

Especially see the second paragraph from the bottom.

Apple and Creative settle iPod dispute
Patent squabble leads to $100 million licensing deal

August 23, 2006 (IDG News Service) Apple Computer Inc. will resolve its patent squabble with Creative Technology Ltd. by paying the Singapore-based company $100 million for a license to use a recently awarded patent.

The deal announced Wednesday ends all legal disputes between the companies, including five currently pending lawsuits, according to a statement. In return for its payment, Apple will get a paid-up license for use of the patent in all its products. It can also make some of that money back by licensing the patent to other companies. In addition, Creative will make iPod accessories under Apple's "Made for iPod" program starting later this year.

Creative is a leading competitor to Apple, in Cupertino, California, which dominates the portable media player market with the iPod. In May, Creative asked a U.S. court to block sales of iPods, saying they violated a patent that covers the user interface software in most portable media players, including the iPod. Creative also asked the U.S. International Trade Commission to block the importation of iPods into the U.S.

The settlement "removes the uncertainty and distraction of prolonged litigation," Apple Chief Executive Officer Steve Jobs said in a statement. The payment will add about $0.85 per share to Creative's earnings in its current quarter, ending Sept. 30, the companies said.

Creative was a pioneer of portable digital media players in the late 1990s with its Nomad products and currently sells the Zen line of players as well as the popular Sound Blaster PC sound cards.

The deal should be a boon to both parties, according to Rob Enderle, principal analyst at Enderle Group, in San Jose, California.

"Apple gets out from under what could have been a major problem," Enderle said. "Creative had a reasonable chance of stopping iPod imports." Apple's stock would have "cratered" if it had, he said.

The iPod accessories market could be a lucrative new business for Creative, which hasn't been growing much in the media player market, Enderle said. The strongest challenger in that space today is SanDisk Corp., he said.

http://www.computerworld.com/action/...=NLT_AM&nlid=1

[LR Max]

God damn. This is quite ironic for me...considering I am listening to a creative labs Xtra right now...

[fullygruntled]

Considering how excessively skinny Fiona Apple is, I think it would be difficult to hit her with any type of projectile. She could probably even thread herself through grapeshot.

[Joe_W]

I'd love more info on what the infringement was.

I'd say it was a bullet, it was going to come down to how much money it would take to make Creative happy

[LR Max]

Originally Posted by Joe_W

I'd love more info on what the infringement was.

I'd say it was a bullet, it was going to come down to how much money it would take to make Creative happy

I disagree, possibly Creative would kill the Ipod to make way for their products. They could probably make a lot more money this way. Even though they are making accessories, I wonder how much money is actually made from the production of the accessories in comparison to the actual Ipod unit.

[BB_nissan]

I'd love more info on what the infringement was.

It was for the touch wheel user interface from what I've heard. From my understanding Creative was the first company to bring it to the market, Apple "borrowed" the design and improved it. This is all second hand knowledge....

[Welby]

All's I know is that the Creatice Zen:M player I bought a few months back kicks major ass, and I use it to excess.

As far as Fiona Apple goes, she is right... the world is bullshit

[Overbear]

Originally Posted by Joe_W

I'd love more info on what the infringement was.

I'd say it was a bullet, it was going to come down to how much money it would take to make Creative happy

Creative owns the pattent on the actual GUI/Selection menu system and the folder tree system. They also own the patent on the ablity to move a highlited bar from one thing to another (on portable/mp3 units). They had tank , and apple was naked with a stick in that fight.

More than likely creative is going to make QUITE a bit more money being nice to apple. Im sure some backroom stock trades happend, and I am quite sure creative is not going to have to pay for the "official" Ipod "stamp of aproval" on their products. That kind of indorsement means millions for creative in assesory sales.

[Travis Waldher]

Originally Posted by LR Max

I disagree, possibly Creative would kill the Ipod to make way for their products. They could probably make a lot more money this way. Even though they are making accessories, I wonder how much money is actually made from the production of the accessories in comparison to the actual Ipod unit.

Well, keep in mind, it's all profit margin.

While the Ipod costs more to the consumers, the margin may be smaller, than the much cheaper accessory market.

Accessories may actually bring in more profit than the Ipods themselves, if they are cheap enough they'll become impulse buys.

[evenBIGGERrock]

About time I see Apple getting beat at their own game.
They are utter DH's at the patent game to the point they don't even sometimes realize they'd be better off and make more money if they loosened up on things.

They are the reason we have this crappy technology today that is incredibly pervasive and known as: USB. If Apple hadn't been so short sided, over gready to the point they shot themselves in the leg, and not know how to use their patents with a better business mindset, we'd all be connected via the far more superior technology of 1394 (aka: Firewire).