Jobs Blinks Posted Fri Aug 25, 2006, 9:58 AM ET

Steve Jobs has finally found a situation he can't bluff or bully his way out of. He has, however, bought his way out of a longstanding tiff with Creative Labs, which holds valuable patents on the workings of music players—including the iPod. A $100 million settlement will end court battles and heal all wounds. Jobs' comment on the outcome is wry and brilliantly understated: "Creative is very fortunate to have been granted this early patent." And in case you were wondering, he adds: "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." The settlement will leave him freer to contemplate finer things, like warm batteries and cool Scandinavians. Folks at Creative, meanwhile, are looking forward to a harmonious future with Apple. Says victorious CEO Sim Wong Hoo: "Apple has built a huge ecosystem for its iPod and with our upcoming participation in the Made for iPod program we are very excited about this new market opportunity for our speaker systems, our just-introduced line of earphones and headphones, and our future family of X-Fi audio enhancement products." Unmentioned: Creative's Zen player, pictured. He's also pleased about the 85 cents per share Creative stockholders will reap from the settlement. Who wouldn't be?

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Reader Comments 

Posted Mon Aug28, 2006, 11:56 AM — By Jeremy Frost One minor correction--that's $100 MILLION, not $100. To say it correctly you need to hold your pinky finger to the corner of your mouth like Dr. Evil. Kudos for updating your blog reguarly!

Posted Tue Sep 5, 2006, 6:16 PM — By Mark Fleischmann Oops, good catch! Thanks.

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