Apple settles patent dispute with Creative for $100 million


Apple was ready to put a patent dispute with Creative to bed, and this sleep was not cheap. Apple agreed to pay Creative $100 million to settle a legal dispute that Creative brought in 2004 that said Apple stole the UI (user interface) design and installed it into the ultra-popular iPod music player. I guess when you can't make money by creating a great product and designing a fantastic user experience, you've got to sue your way to profits.

This is not the first and won't be the last time this happens. Call it the m.o. of missing the boat, which *so* many companies do these days, only to follow up with mediocre design and products with owner's manuals written by someone from Saturn.

Not that Creative is this way -- its recent video and audio players have great design (though not quite up to an iPod, after checking out the Zen Vision M the other day). Creative's players are feature-laden as well, which is not a sign of sales growth as dozens of manufacturers have found out. Features -- and even price -- can't hold a candle to the entire customer experience that Apple makes for each customer.

What disturbs me here is that Creative patented a "hierarchical" interface design, then said Apple infringed on the patent. Since when did the generality of a design become so easy to patent? Chalk one up for goofy patent laws I guess. Apple countersued Creative, saying that it had ripped off the iPod for its players. Steve Jobs looked weary of this and was ready to settle, which brought the $100 million settlement yesterday. Apple can afford it with its house of cash, believe you me -- but should it have caved?

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.

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Last updated: February 13, 2012: 07:56 AM

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