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'Amicable settlement'
Creative called for iPods to be withdrawn from sale in the US, claiming their software infringed patents on technology used to organise music on its Nomad and Zen media players.
As part of the settlement, Apple will pay Creative $100m to license a software patent for use in all its products.
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This settlement resolves all of our differences with Creative, including the five lawsuits currently pending between the companies
Steve Jobs, Apple chief executive
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Creative will also be able to supply accessories for the iPod under Apple's "Made for iPod program".
"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 Apple's chief executive Steve Jobs.
Creative described the settlement as "amicable" and said it opened up "significant new opportunities" for the business.
The US International Trade Commission was conducting an inquiry into the dispute but this is now expected to end.
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| Story from bbc.co.uk |
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