Apple, Creative Tech Settle Patent Dispute

Updated from 6:48 p.m. EDT

Apple Computer (AAPL Quote) and Creative Technology (CREAF Quote) have decided to bury the hatchet.

Under a deal announced on Wednesday, Apple will pay Creative $100 million to license its patent on MP3-player-interface software. The deal comes three months after Creative sued Apple and filed a complaint with the U.S. International Trade Commission, accusing the iPod maker of violating that patent.

"Creative is very fortunate to have been granted this early patent," Apple CEO Steve Jobs said in a statement. "This settlement ... removes the uncertainty and distraction of prolonged litigation." ...