Apple counter-sues Creative for iPod

apple ipod

The quiet war between two big producers of portable music devices is rising on power: Creative, which makes a range of MP3 players called Zen, had alleged that the Apple iPod user interface infringed on patents Creative owns concerning the method in which users search for music on portable MP3 devices. Now Apple has alleged that Creative has infringed on its iPod patents. At the moment Creative stocks are at an all-time low, while Apple Computer’s price is in the stratosphere. There were more than a few market watchers who believed that the Creative lawsuit launched against Apple this week was simply a ploy to make some quick money in an out of court settlement. If so, then it has back-fired.

Apple has 77 per cent of the US market, while Creative has less than 10 per cent. Although this ratio isn’t so good for Apple in Europe and Asia, they are still one of the leading companies producing mp3 players. Creative this month reported a record quarterly loss of US$114m, which it blamed on falling prices in the digital player market and unsold inventory. Sim Wong Hoo, Creative founder and chief executive, last year decided to challenge Apple for dominance of the MP3 player market but the effort appears to have proved wrong. I know iPods are extremely popular, but I personally prefer much cheaper and better equiped mp3 players from companies just like Creative. Even if the company is Asia-located, brands like iAudio or iRiver or Mpio can produce a pretty good device which has much more functions and features than over-hyped iPods…