Apple Sued for Alleged Patent Violation

The success of the iPod has revived Apple's business and its stock price. Indeed, in Apple's last two quarters, the company has garnered more revenue from selling iPods than from selling Macintosh computers.

In contrast, Creative has struggled. The company's MP3 players have been a distant also-ran to the iPod line. Overall, though the company's sales have risen in the last two years, its profit plummeted last year.

And while Apple's stock is up nearly 500% over the last five years, Creative's stock is down 42% over that time period.

Apple's recent success in digital music has made it a target of lawsuits from disgruntled customers, business rivals and patent holders. The company faces at least one other suit related to the iPod interface, for instance.

Additionally, the company has been battling Apple Corps, the Beatles' record company, over whether its entry into digital music violates the terms of an earlier agreement that ended a trademark battle between the two companies.

Last week, a British judge ruled that Apple's iTunes music store can continue to use the Apple logo; Apple Corps has reportedly said that it plans to appeal the decision.

After ending the regular trading session up 9 cents to $67.79, shares of Apple were off about 19 cents, or less than 1%, to $67.60 in recent after-hours trade.

Creative shares were up about 27 cents, or 5%, to $5.73 recently after hours. The company's stock closed regular trading off 10 cents, or about 2%, to $5.46.