Apple Settles With Creative For $100 Million

chibianh · Aug 23, 2006, 05:37 PM

Whoa..

http://www.macminute.com/2006/08/23/apple-creative/

Guess they realized they couldn't win..

IJ Reilly · Aug 23, 2006, 05:40 PM

$100 million? Yikes.

Subiklim · Aug 23, 2006, 05:40 PM

http://www.apple.com/pr/library/2006...ettlement.html

Lixivial · Aug 23, 2006, 05:40 PM

Quote:

In addition, the companies announced that Creative has joined Apple's "Made for iPod" program and will be announcing their own iPod accessory products later this year.

...Sim Wong Hoo throwing in the towel? NEVER!

EDIT: Yeah, the $100 million is kinda shocking, too...

AlBDamned · Aug 23, 2006, 05:42 PM

Quote:

Originally Posted by IJ Reilly

$100 million? Yikes.

Yup. how much does Jobs saying "Creative is very fortunate to have been granted this early patent" say to you? Pissed off is the roundabout answer!

emw · Aug 23, 2006, 05:42 PM

Really, though $100 million isn't all that significant to a company with reserves like Apple has, vs. having a possible patent infringement hanging over them that could, given a ruling against them, cost much more.

IJ Reilly · Aug 23, 2006, 05:45 PM

Quote:

Originally Posted by emw

Really, though $100 million isn't all that significant to a company with reserves like Apple has, vs. having a possible patent infringement hanging over them that could, given a ruling against them, cost much more.

Maybe not, but why do I think Apple could have bought the entire company for that kind of dough?

WildCowboy · Aug 23, 2006, 05:45 PM

Creative's stock up 30% in after-hours trading. The $100 million is a drop in the bucket for Apple, but it will certainly help Creative...

emw · Aug 23, 2006, 05:45 PM

Quote:

Originally Posted by IJ Reilly

Maybe not, but why do I think Apple could have bought the entire company for that kind of dough?

Ha! Probably crossed their minds.

AlBDamned · Aug 23, 2006, 05:47 PM

Quote:

Originally Posted by emw

Really, though $100 million isn't all that significant to a company with reserves like Apple has, vs. having a possible patent infringement hanging over them that could, given a ruling against them, cost much more.

I guess so. It's good that there's been a settlement though. For both companies I think this is a positive outcome.

Peterkro · Aug 23, 2006, 05:49 PM

Quote:

Originally Posted by WildCowboy

Creative's stock up 30% in after-hours trading. The $100 million is a drop in the bucket for Apple, but it will certainly help Creative...

Methinks a creative person involved in the negotiations could have made a fortune buying Creative stock at the right time.It would be illegal of course.

Subiklim · Aug 23, 2006, 05:49 PM

Quote:

Originally Posted by emw

Ha! Probably crossed their minds.

I highly doubt it. Remember, when Apple gets big, they'll have the group of haters that follow Microsoft claiming monopoly.

AlBDamned · Aug 23, 2006, 05:51 PM

Quote:

Originally Posted by Subiklim

I highly doubt it. Remember, when Apple gets big, they'll have the group of haters that follow Microsoft claiming monopoly.

Well Apple isn't afraid of buying companies. The whole idea for the iPod came not from Apple but from a company they took over.

Subiklim · Aug 23, 2006, 05:53 PM

Quote:

Originally Posted by AlBDamned

Well Apple isn't afraid of buying companies. The whole idea for the iPod came not from Apple but from a company they took over.

A little-known company, and that was to create it's product. If apple buys one of their largest competitors, that will raise a few eyebrows.

Freg3000 · Aug 23, 2006, 05:57 PM

What I find most interesting is that fact the Creative is joining the Made for iPod program and will be producing its own iPod accessories.

AlBDamned · Aug 23, 2006, 05:58 PM

Quote:

Originally Posted by Subiklim

A little-known company, and that was to create it's product. If apple buys one of their largest competitors, that will raise a few eyebrows.

Largest in a sense but Creative is hardly a competitor. The largest out of 25% is substantial in everyday terms but I think it's safe to assume the MS Zune would have destroyed their market share. And I wouldn't have cared if this lawsuit had flattened creative (as it was due to do before they won the patent filings).

Creative make feature-filled products but they lack a) finesse and b)the iTunes music store.

If Creative hadn't won the patent fight they would have already filed for bankruptcy by now.

MacRumors · Aug 23, 2006, 06:07 PM

http://www.macrumors.com/images/macrumorsthreadlogo.gif

Apple and Creative have resolved their legal disputes which started on May 15th of this year when Creative and Apple sued each other claiming patent infringement. According to a joint-press release, Apple will pay Creative $100 million USD to settle all outstanding lawsuits.

Quote:

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

Eraserhead · Aug 23, 2006, 06:10 PM

It seems advantageous for both parties, Creative get the opportunity to make some money for a change too

applerocks · Aug 23, 2006, 06:11 PM

Too bad Apple had to pay when, IMO, they didn't really infringe on a patent.

But, it's good that the lawsuits are done with.

We'll see what Creative's next moves are. More accessories and less hardware?

applerocks

AvSRoCkCO1067 · Aug 23, 2006, 06:11 PM

I still find the fact that Creative will be making products for the iPod the most interested aspect of this case - but damn, 85 cents a share is crazy high

!

ender78 · Aug 23, 2006, 06:12 PM

I see Apple stock going up on this news. $100 Million is getting off easy. Could have been a LOT worse.

AvSRoCkCO1067 · Aug 23, 2006, 06:13 PM

Quote:

Originally Posted by applerocks

Too bad Apple had to pay when they didn't really infringe.

But, it's good that the lawsuits are done with.

We'll see what Creative's next moves are. More accessories and less hardware?

applerocks

My guess is that Apple really did infringe - Steve sounded a little pissed off in his comments, but he also sounded like he really did lose...otherwise, they wouldn't have paid Creative 100 million dollars....

MattyMac · Aug 23, 2006, 06:13 PM

Who's Creative?

ender78 · Aug 23, 2006, 06:14 PM

Quote:

Originally Posted by applerocks

Too bad Apple had to pay when, IMO, they didn't really infringe on a patent.

Either Apple believed they did and/or was afraid of further damages the court could award. If Steve thought he could invalidate the patent, he would not have settled.

jsarrasinjr · Aug 23, 2006, 06:14 PM

You have to wonder how tenuous Apple's position was considering that they have settled so early (in huge lawsuit time). 100 million dollars is a lot of money to spend to get Creative off their back.

Aug 23, 2006, 05:37 PM	#1
chibianh macrumors 6502a Join Date: Nov 2001 Location: Colorado	Apple settles with Creative Whoa.. http://www.macminute.com/2006/08/23/apple-creative/ Guess they realized they couldn't win.. __________________ http://homepage.mac.com/chibianh Wii - 5541 0340 9309 6664 Mario Strikers Charged: 386653 780449

Aug 23, 2006, 05:40 PM	#2
IJ Reilly macrumors 603 Join Date: Jul 2002 Location: Palookaville	$100 million? Yikes. __________________ **The season starts too early and finishes too late and there are too many games in between.* Bill Veeck

Aug 23, 2006, 05:40 PM	#3
Subiklim macrumors 6502 Join Date: Mar 2006 Location: Manhattan, New York	Apple, creative reach settlement http://www.apple.com/pr/library/2006...ettlement.html

Aug 23, 2006, 05:45 PM	#8
WildCowboy macrumors god Join Date: Jan 2005 Location: nowhere near the infinite loop anymore	Creative's stock up 30% in after-hours trading. The $100 million is a drop in the bucket for Apple, but it will certainly help Creative... __________________ 15" 2.4 GHz MacBook Pro -- 15" 1.67 GHz PowerBook -- 14" 1.2 GHz iBook

Aug 23, 2006, 05:57 PM	#15
Freg3000 macrumors 68000 Join Date: Sep 2002 Location: New York	What I find most interesting is that fact the Creative is joining the Made for iPod program and will be producing its own iPod accessories. __________________ FregTK This Is Momentum.

Aug 23, 2006, 05:42 PM	#6
emw macrumors 603 Join Date: Aug 2004	Really, though $100 million isn't all that significant to a company with reserves like Apple has, vs. having a possible patent infringement hanging over them that could, given a ruling against them, cost much more.

Aug 23, 2006, 06:10 PM	#18
Eraserhead Contributor Join Date: Nov 2005 Location: Oxford, UK	It seems advantageous for both parties, Creative get the opportunity to make some money for a change too

Aug 23, 2006, 06:11 PM	#19
applerocks macrumors member Join Date: Jun 2005	Too bad Apple had to pay when, IMO, they didn't really infringe on a patent. But, it's good that the lawsuits are done with. We'll see what Creative's next moves are. More accessories and less hardware? applerocks

Aug 23, 2006, 06:11 PM	#20
AvSRoCkCO1067 macrumors 65816 Join Date: Sep 2005 Location: CO	I still find the fact that Creative will be making products for the iPod the most interested aspect of this case - but damn, 85 cents a share is crazy high !

Aug 23, 2006, 06:12 PM	#21
ender78 macrumors regular Join Date: Jan 2005	I see Apple stock going up on this news. $100 Million is getting off easy. Could have been a LOT worse.

Aug 23, 2006, 06:13 PM	#23
MattyMac macrumors 68000 Join Date: Oct 2005 Location: NJ/NYC	Who's Creative? __________________ 24" iMac - 13" Al MacBook iPhone/iPhone 3G 1G-2G-3G-4G-5G iPod / iPod Photo/ 2G mini / 1G-2G-3G nano / 1G-2G shuffle / iPod touch

Aug 23, 2006, 06:14 PM	#25
jsarrasinjr macrumors member Join Date: Mar 2005 Location: western MA	You have to wonder how tenuous Apple's position was considering that they have settled so early (in huge lawsuit time). 100 million dollars is a lot of money to spend to get Creative off their back. __________________ "And so he says, 'I don't like the cut of your jib.' And I says, IT'S THE ONLY JIB I GOT, BABY!"

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