Creative seen gaining from iPod accessories market after Apple deal

AFP, August, 2006

SINGAPORE (AFP) — Creative Technology may have lost to Apple Computer in the battle for global MP3 player dominance, but it could gain new markets for its speakers and headphones under a settlement deal, analysts said. The Singapore company has paid dearly in its unsuccessful bid to challenge Apple in the digital music player market, slipping into the red for the year to June with a loss of 118.2 million US dollars.

But Apple and Creative stunned investors Wednesday when they announced the settlement under which the US-based firm will pay Creative 100 million dollars to settle a dispute over patented technology used in its iPods and Nanos. The deal ended a budding legal battle that began earlier this month after Creative was awarded what it referred to as a "Zen patent" on technology used to select and sort songs in its Zen music player. Part of the deal allows ...