Technology stocks looked to shake off the previous session’s losses in early trading Thursday, with Creative Technology Ltd. (CREAF : 7.52, +1.51, +25.1% ) leading the advance. Creative shares surged $1.47, or more than 24%, to $7.48 after the maker of digital-media players reached a $100 million settlement in a patent dispute with Apple Computer Inc. (AAPL : 67.76, +0.45, +0.7% ) . Apple shares rose 31 cents to $67.66,” Rex Crum reports for MarketWatch.
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Michael Gartenberg writes for Jupiter Research, “So you’ve seen the news about Creative and Apple. What does it mean? Net for Creative, validation for their patents and 100 million from Cupertino (which may not end up costing Apple 100 million based on who else ends up paying Creative). Net for Apple, settling a suit that might have cost them more to fight and they take a win with Creative joining the “Made for iPod” licensing program. Getting creative as a licensee for iPod accessories certainly underscores Apple’s position in the market as the dominant player. That might have been worth 100 million all by itself.”
MacDailyNews Take: We await Creative’s first batch of “Made for iPod” accessories. Anyone care to predict the date of end of Creative’s MP3 player lines?
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Creative Tech’s investors cheer iPod decision but company’s woes far from over – August 24, 2006
Analyst: Apple’s relatively small settlement with Creative removes threat hanging over iPod – August 23, 2006
Apple & Creative settle: Apple pays $100M for ‘Zen’ patent, Creative plans iPod accessories – August 23, 2006