Apple May Face a Patent Battle

A long running dispute over the intellectual property rights to software used in the iPod could end in legal action being taken against Apple.

Creative, an electronics company based in Singapore hold the rights to the digital filing system used in Mp3 players to find songs, however Apple use the software in their iPod and have essentially ignores a US patent ruling in August in favour of Creative.

 If the matter is taken to Court Apple could face a large fine and an imposed order instructing the company to develop new software of its own.

 If a decision was made against Apple it would be a huge blow to the company which sold 23.3 million iPods last year. Conversely it would be a boost for Creative which only sold 8 million Mp3 players last year.

 At the moment it looks doubtful that action will be taken immediately however, it could be argued that if Creative have any aspirations in respect of the Mp3 market and indeed value their intellectual property rights as highly as they should then legal action should not be too far away.

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