August 23, 2006 2:07 PM PDT

Apple will pay Creative $100 million for a license to a Creative patent that had been the subject of a legal dispute between the two companies.

Creative was awarded a patent last August for a music player user interface, and it sued Apple in May claiming the iPod maker was infringing upon its patent. As a result of the settlement, all legal disputes between the two companies related to the patent will disappear. Apple has the right to be reimbursed on the $100 million payment if Creative is able to secure licensing deals with other MP3 player manufacturers, it said Wednesday in a press release.

Posted by Tom Krazit