Settlement resolves a total of five pending lawsuits.
Apple Computer will pay Creative Technology $100 million to settle a digital music patent dispute between the two companies.
Creative, the company behind the Zen line of digital music devices, filed suit against Apple on May 15, claiming patent infringement of technologies it uses in its iPod and iPod Nano players.
Last August, Creative was awarded a patent related to how digital music files are stored, organized and accessed on a device. Apple reportedly lost its bid for a similar patent in July of last year. In the suit, filed both in a northern California U.S. District Court and with the U.S. International Trade Commission, Creative claims the iPod infringes on this patent.
As part of the settlement—which resolves a total of five pending lawsuits between the two companies, including two Apple countersuit claims—Apple can get some of the $100 million back if Creative successfully licenses its patent to other digital music device makers.
Creative also has joined Apple's "Made for iPod" program and will be announcing their own iPod accessory products later this year.