fruit to pay US$100 million to creative

[redalf 0]

http://money.cnn.com/2006/08/23/technology....reut/index.htm

 

wah... lots of money...

Edited August 24, 2006 by redalf

[Newbie123 0]

100 million is peanuts to the fruit leh since the fruit has 8 billion of Vit M. Hmm... interestingly... creative going to make product for the fruit... why the fruit never make product for creative.. hmm... creative depending on the fruit for biz?

[scanfiend 0]

100 million is peanuts to the fruit leh since the fruit has 8 billion of Vit M. Hmm... interestingly... creative going to make product for the fruit... why the fruit never make product for creative.. hmm... creative depending on the fruit for biz?

 

Simple economics - Apple has 75% share of US market vs 4+% for Creative. But yeah, there is a dearth of accessories for Creative products other than travel speakers

[aaron-xp 0]

Wow, never expected this... I thought it would be a long drawn legal battle. All the better for both sides though, I guess.

[heady 0]

Actually, it is a win-win situation cos 100 million while big bucks to us is peanuts to big fruit. They will probaby pay more than that for legal fees. Analysts said this is big fruit way of stabbing all their competitors in the back cos their competitors also must pay Creative now since there is precedence.

 

So big fruit got to use Creative's patents in exchange for peanuts while the other manufacturers also got stung. And big fruit know Creative's products can never catch up to their product.

 

Got to give it to that man.

[jasonhanjk 0]

I was shock when I read this news at 9am, post at HWZ immediately. As Creative will make accesories for Apple. All of a sudden I felt the whole Ipod fan supported Creative.

 

Seems that Creative strategy now is to focus less on MP3 player. Why make a money losing product. So you may see Creative accesories that support Apple product more in the future.

[aaron-xp 0]

They will most likely go somewhat higher end for DAPs, with the Zen Vision and the next player, Zen Vision: W, all PMPs...

[kehyi 0]

here's something you all might not have noticed:

 

1) Apple gets a license fee for every official "Made for iPod" accessory sold. The more accessories Creative sells, the more Apple earns.

 

2) "Apple can recoup a portion of its payment if Creative is successful in licensing this patent to others" quoted directly from the press release. In other words, Apple gets money from Creative if they succeed in getting other MP3 makers to license their 'patent'. Effectively, Apple has become co-owners of the patent...

 

and yes, like heady says, Creative is now *obliged* to defend their patent against other 'infringements', ie everybody else who is making MP3 players. And with Apple's $100 mil, they now have the financial ability to sue everyone and anyone. And since they 'won' vs Apple, their case is now watertight. In other words, every other MP3 maker will have to cough up... and Apple gets a share of it.

 

$100 mil is small change...

[Charismatic 0]

Creative's "Made for iPod" accessories = If you can't beat them, buy them. If you can't buy them, join them.

 

Smart move from Creative(Sim Wong Hoo).

[afbug 0]

I think its a smart move by apple. Now they got a tag team partner in their corner when the real giant, microsoft makes an entry into the mp3 business.

 

Creative not only win 100m, now they even hold hands with apple liao. Take about all out war, they can end up as lovers!

 

I think the only one that can go head to head against Microsoft is Sony.

Edited August 25, 2006 by afbug

[aaron-xp 0]

Rest of MP3 world vs. Microsoft (for turning its back on the smaller companies ie. iRiver and Creative, after initial help.)

[Absolute0 0]

I think Microsoft was irked by their smaller collaborators' lack of success in undermining Apple's share in the DAP market, which the latter proceeded to fortify while Microsoft struggled to come up with their own Zune player.

 

Creative's collaboration with Apple is merely strategic, and I don't think it is their, or any other DAP makers', intention to target Microsoft as their greatest rival. At least not when Apple still currently dominates most of the market.

 

Incidentally, who got Creative shares after the revelation? Would have made a pile!

[jasonhanjk 0]

Creative have good designer but bad management. Management likes ugly design.