Apple and Creative have announced a settlement ending the patent dispute related to the iPod and Creative's patented player technology.

Apple and Creative Technology yesterday announced a settlement ending all legal disputes between the two companies (via paidContent). Apple will pay Creative $100 million for a paid-up license to use Creative's patented technology in all Apple products. Apple can recover a portion of its payment if Creative is successful in licensing this patent to others. Creative sued Apple in May, saying its patented technology was being used in the iPod; Apple countersued, making similar claims.

The companies also announced that Creative has joined Apple's "Made for iPod" program and will be announcing its own iPod accessory products later this year, including speaker systems, a newly launched line of earphones and headphones, and planned X-Fi audio enhancement products.

"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.

Prior coverage:

- Apple Countersues Creative
- Creative Sues Apple, Demands Halt to iPod Sales