5/25/2016
`
`Apple- Press Info- Apple & Creative Announce Broad Settlement Ending Legal Disputes Between the Companies
`
`Apple Press Info
`
`Press Releases
`
`Product Images & Info
`
`Apple Leadership
`
`Apple & Creative Announce Broad Settlement Ending Legal
`Disputes Between the Companies
`
`CUPERTINO, California and SINGAPORE- August 23, 2006- Apple ® and Creative Technology, Ltd. today announced a broad
`settlement ending all legal disputes between the two companies. Apple will pay Creative $100 million for a paid-up license to
`use Creative's recently awarded patent in all Apple products. Apple can recoup a portion of its payment if Creative is
`successful in licensing this patent to others. In addition, the companies announced that Creative has joined Apple's "Made for
`iPod" program and will be announcing their own iPod ® accessory products later this year.
`
`"Creative is very fortunate to have been granted this early patent," said Steve jobs, Apple's CEO. "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."
`
`"We're very pleased to have reached an amicable settlement with Apple and to have opened up significant new opportunities
`for Creative," said Sim Wong Hoo, chairman and CEO of Creative. "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.
`We expect that the one-time licensing payment of $100 million will contribute approximately $.85 of earnings per share to
`our current quarter, ending September 30, 2006."
`
`About Apple
`Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the
`1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and
`notebook computers, OS X operating system, and ilife and professional applications. Apple is also spearheading the digital
`music revolution with its iPod portable music players and iTunes online music store.
`
`About Creative
`Creative (NASDAQ: CREAF) is a worldwide leader in digital entertainment products for PC users. Famous for its Sound Blaster
`sound cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform
`with products like its highly acclaimed ZEN+ MP3 players. Creative's innovative hardware, proprietary technology, applications
`and services leverage the Internet, enabling consumers to experience high-quality digital entertainment-- anytime,
`anywhere.
`
`Press Contacts:
`Steve Dowling
`Apple
`(408) 974-1896
`dowling@apple.com
`
`Phil O'Shaughnessy
`Creative Labs, Inc.
`(408) 546-6773
`pas haug hnessy@c reative .com
`
`Apple, the Apple logo, Mac, Mac OS, Macintosh and iPod are trademarks of Apple. Other company and product names may be trademarks of their
`respective 0\IVners.
`
`Apple Media Helpline
`
`(408) 974-2042 media.help@apple.com
`
`https://www.apple.com/pr/library/2006/08/23Apple-Creative-Announce-Broad-Settlement-Ending-Legai-Disputes-Between-the-Companies.html
`
`1/1
`
`994-CREATIVE-0009242
`
`1
`
`