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Apple to Pay Creative $100 Million

As part of a wide settlement over MP3 technology Apple Computer Inc. will pay Singapore`s Creative Technology Ltd. a sum of $100 million. This way Apple and Creative will probably end their harsh argument during which they exchanged various patent suits over MP3 technology. Creative, who also competes in the MP3 market, assumed that Apple`s iPod product line infringed upon its MP3 patents.

The $100 million will allow Apple to use Creative`s recently awarded patent in all Apple products. In addition, the companies stated that Creative has joined Apple`s "Made for iPod" program and will be announcing their own iPod accessory products later this year.

This is not the first Apple`s bad publicity. The company recently said it has discovered additional evidence of irregularities of its business practices. For instance, charges of forced labor at a Chinese iPod factory were unfounded, said Apple, though admitting that the Longhau plant exceeded the American company`s limits on hours and days worked per week. Sim Wong Hoo, chairman and CEO of Creative, said: "We`re very pleased to have reached an amicable settlement with Apple and to have opened up significant new opportunities for Creative."