Internet news June 14, 2006

Creative says ITC probe under way against Apple

The U.S. International Trade Commission has launched a probe into whether Apple Computer Inc.’s (Nasdaq:AAPL - news) iPod digital music player infringes on a Creative Technology Ltd. (CREA.SI)(Nasdaq:CREAF - news) patent, Creative said on Wednesday.

The probe marks the latest in a string of legal scrapes between Apple, maker of the market-leading iPod, and Singapore- based Creative, the world’s No. 2 MP3 player maker. Earlier in June, Apple filed a second patent infringement lawsuit in the United States against Creative, which itself has filed patent complaints against Apple in a federal court.

Creative on Wednesday filed a complaint alleging Apple imported into the United States and sold iPod devices that infringe on Creative’s “Zen” patent, which covers the user interface in its Nomad and Zen portable digital media players.

Creative asked the ITC to issue a permanent exclusion order and a permanent cease and desist order against Apple.

An Apple spokesman said Apple declined to comment.

Creative said the case will be referred to Administrative Law Judge Paul Luckern, who will hold hearings and make an initial determination as to whether a violation was committed. The commission typically issues a ruling about 12 months to 15 months after an investigation starts.

Apple shares fell 72 cents to close at $57.61 in afternoon trading on Nasdaq, and Creative rose 24 cents, or 5.1 percent, to close at $4.96.

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