Free WiFi Hotspot Locator from TechNewsWorldThe second U.S. technology patent rumored to allow another company to rake in royalties from Apple (Nasdaq: AAPL) 
for its popular iPod digital music player may have a better chance of actually extracting revenue from Steve Jobs' company, but it is still unlikely.
While a patent application rejection two weeks ago and a similar patent effort by Microsoft (Nasdaq: MSFT) caused many to charge Apple of fumbling its patent protection for the technology behind the wildly successful iPod, experts indicated the issue was basically standard patent procedure, and royalties from Apple to Microsoft were unlikely.
However, a smaller player, Creative Labs, has announced that the iPod is using technology it patented this month, dubbed the "Zen patent" after its Zen MP3 player. Creative caused a stir over its intentions of patent enforcement, but did not indicate concrete plans to take legal action.
This time around, technology patent experts said there may be more of a chance Creative could eventually get royalties from Apple, although a cross-licensing agreement would be more likely. In addition, industry analysts stressed the process takes a long time to play out before any kind of negotiations or royalty demands could occur.
"As far as the patent process and how long it takes to patent something, this is a story that is not yet written," Yankee Group senior analyst Mike Goodman told TechNewsWorld.
Tech Used in iPod
Although it made no indication that it intended to take legal action against Apple or any other competing digital music player maker, Creative touted its so-called Zen patent this week, indicating in the headline of a press release that the technology -- the user interface that allows navigation through a hierarchy of display screens -- is a part of Apple's popular iPod player.
"Creative awarded U.S. patent on its invention of user interface for portable media players," the headline read, and below it: "Zen patent granted for invention of its user interface for portable media players including many of Creative's Zen and NOMAD Jukebox MP3 players and found in some competing players such as the Apple iPod and iPod mini."
The company deflected direct questions on whether it would take legal action against Apple in a teleconference on the matter, indicating it was discussing only its products and not its strategy.
Player Patent Race
Still, Creative chairman and CEO Sim Wong Hoo said Singapore-based Creative had beaten Apple to the patent filing and highlighted the company's shipping of the NOMAD player five years ago.
"By January of 2001, we announced that we had already sold 100,000 NOMAD Jukeboxes," he said in a statement. "The Apple iPod was only announced in October 2001, 13 months after we had been shipping the NOMAD Jukebox based upon the user interface covered by our Zen patent."
Sim added that an Apple provisional patent application was filed July 30, 2002, 18 months after Creative's filing for the recently-awarded Zen patent and nearly two years after the NOMAD, based on the patented user interface, was on the market.
Sharing Before Litigating
A patent attorney, who declined to be identified because of his firm's ties with both companies, told TechNewsWorld the latest potential patent issue for Apple is much different than the routine rejection of the company's own application earlier this month.
The attorney added it is not uncommon for companies that obtain patents to put to leverage the intellectual property right away.
"You're legally permitted to bring suit the day a patent is issued," he said. "That is done. It's not something that's never done."
However, the expert added Creative may also want access to technology that ends up being patented by Apple, and a cross licensing agreement is far more likely in such a situation.
Time Will Tell
Yankee Group's Goodman stressed that in the time it will take for the patent process to shake out, particularly for the technology of portable digital music players, the result may be patents for a number of different players, including Apple, Creative, Microsoft and others.
"I don't think you'll see a lawsuit. I don't think you see negotiations for at least 10 years," Goodman said, referring to appeals within the patent procedure, and then additional options through the courts, which include more appeals.
Goodman added it would be difficult to take on Apple in a patent fight, given the company's past innovation and experience, particularly with software rival Microsoft.
"It's hard to take a bite of Apple," he said. "They've had a hard lesson in this."
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