Creative win munches hole in Apple profits

In the same way that football fans applaud a Chelsea loss, the tech world has been nodding its head in approval at Creative’s victory today over Apple

In the same way that football fans applaud a Chelsea loss, the tech world has been nodding its head in approval at Creative’s victory today over Apple in the bloody battle of the music player menus.

The legal tussle revolved around Creative’s patent on its players’ menu systems, which it devised back in 2000, well over a year before the first iPod changed music-buying forever using a suspiciously similar format.

A joint statement from the two companies’ revealed that the out of court settlement would swell Creative’s coffers to the tune of £52 million. This is hardly likely to bring Steve Jobs’ Goliath crashing earthwards, but the deal will also let the Zen-maker produce iPod accessories, a stipulation which could turn out to be a sizeable cash cow for the digital music stalwart.  

The stock market certainly agrees – Creative’s shares sky-rocketed by 37% following the news. That’ll buy the company a whopping pub lunch, during which it can mull over how it’s going to cope with the arrival of Microsoft’s Zune later this year. Make that twelve bottles of red, waiter.

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Related links:

Creative

Apple iPod

Microsoft Zune