WASHINGTON - Apple Computer, maker of the iPod music player, is suing Creative Technology, raising the stakes in the legal dispute over competing devices.

Apple claims Creative Labs, the U.S. division of Creative Technology, infringes four patents in its hand-held digital players. The suit was filed in a Wisconsin District Court on May 15, the same day Creative filed a lawsuit and a trade complaint against Apple.

“Creative proactively held discussions with Apple in our efforts to explore amicable solutions,” Phil O’Shaughnessy, a spokesman for Creative, said. “At no time during these discussions or at any other time did Apple mention to us the patents it raised in its lawsuit.”

Creative filed a complaint with the U.S. International Trade Commission seeking an order to block imports of the iPod, most of which are made in China. A lawsuit the company filed against Apple in District Court in San Francisco is likely to be put on hold while the trade complaint is heard.

The iPod controls 77 percent of the U.S. market, compared with less than 10 percent for Creative.

Source: http://www.iht.com/articles/2006/05/18/business/ipod.php

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No matter who wins, we the consumers will lose.

Some say that Creative should spend its money on R&D, but if you allow others to infringe your patent, what for spend money on R&D?!

Creative better not close down, cause they produce good Sound Blasters :D.