Creative Technology Wants a Piece of Apple's Pie

Another day, another lawsuit against Apple (Nasdaq: AAPL) .

A Singapore-based company, Creative Technology, claims that the way Apple's iPod allows users to search for content on the device is based on technology for which it was granted a patent in 2005.

Apple had applied to the U.S. Patent Office for a similar patent but it was denied.

Reportedly, Creative and Apple discussed Apple licensing Creative's technology in 2001, as well as investing in a possible spin-off of Creative's line of MP3 players -- proposals that Creative apparently turned down.

Two Venues

Later that year, Apple launched its iPod -- which, of course, went on to dominate the portable media player market.

Creative has filed suit in the U.S. District Court in San Francisco, seeking an injunction and unspecified damages. It has also filed a complaint with the U.S. International Trade Commission.

Because it is based overseas, Creative had that option, Anthony Zeuli, a patent attorney with Merchant & Gould, told MacNewsWorld. "It is a different judge and a slightly different legal procedure. The ITC and the District Court can provide different remedies to Creative Technology, if they want."

For instance, assuming the iPods are manufactured overseas, the ITC could conceivably stop shipments of the products if it finds in favor of Creative. "That is something the District Court cannot do."

Neverending Litigation

Creative's suit against Apple is only the latest in an onslaught of legal complaints and legislative efforts against the company that, given Apple's dominance in the market, shows little signs of abating.

Earlier this year, Burst.com filed a countersuit against Apple in the U.S. District Court in San Francisco stating that Apple's iTunes Music Store, iTunes software, the iPod devices, and Apple's QuickTime streaming products infringe on four of its patents.

Other encounters with the law include France's mandate to open iTunes so it would be compatible with media players other than the iPod, and a successful clash with Apple Corps, which manages the Beatles's commercial interests, over use of the Apple logo.

"Companies such as Creative view Apple's market share as rightfully belonging to them -- or at least part of its market share," Zeuli said. "Creative was the first to market with a portable media player and then Apple came," he pointed out.

"Not that that has anything to do with the lawsuit," Zeuli continued, "but the fact that Apple went on to own the media player marketplace suggests to me there might be some hurt feelings at Creative."