Array

SAN FRANCISCO, Aug 24 (Reuters) Apple Computer Inc. said it will pay $100 million for a license to use Creative Technology Ltd.'s patented technology in its iPod music player, settling all legal disputes between the two companies.

U.S.-traded shares of Singapore-based Creative surged 25 percent in extended trading following the announcement. Apple shares slipped 0.2 percent.

Apple Chief Executive Steve Jobs said the agreement ends five lawsuits between the companies ''and removes the uncertainty and distraction of prolonged litigation.'' ''Creative is very fortunate to have been granted this early patent,'' Jobs added. Creative, the world's second-largest maker of MP3 music players after Apple, sued Apple in May alleging the Cupertino, California-based computer maker had infringed a patent on its ''Zen'' player.

Jobs said further that the settlement ''resolves all of our differences with Creative.'' Apple in June countersued, while Creative took the case to the U.S. International Trade Commission and sought a permanent cease-and-desist order against Apple.

Shares of Apple shed 28 cents to $67.12 in extended trade after the settlement announcement. The stock had closed down 31 cents at $67.31 in regular trading on Nasdaq.

Creative shares rose $1.49 to $7.50 in extended trading after closing down 5 cents at $6.01 on Nasdaq.

REUTERS VJ BST0436