Heard first on the Mac OS Ken Aug 23 podcast: Apple has agreed to pay Creative Technology Ltd USD100 million so that it can use Creative’s patent for its iPod’s interface.

In an official statement, Apple CEO Steve Jobs said that Creative was fortunate to be granted the patent which describes the method of navigating a digital music player through scrolling menus. “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,” said Jobs.

On top of that, Creative will join Apple’s “Made for iPod” programme so you can expect to see Creative brand iPod accessories soon.

Err, did hell freeze over or what?

Creative CEO Sim Wong Hoo. Now making iPod accessories.

In reality, the settlement is not the massive win that Creative hoped for, points out Forbes. Creative was initially hoping for a recurring license fee (lawyers let me know the correct term) that would give them a cut for each iPod sold, a potential goldmine for the Singaporean company. With this settlement, Apple can forget about any legal worries and not have to pay Creative a per-iPod fee.

Forbes also thinks that Creative is getting something else in the deal from Apple, since the company that previously declared all-out war on Apple were so eager to accept it. Please don’t tell me that Creative will be the exclusive accessory maker of some upcoming iPod…

Moral of the story

Apple will need to remember to patent everything now. Who ever thought that scrolling through menus could be patented? And you know who’s the one who’s laughing all the way to the bank? The lawyers.