Apple Computer Inc. announced Wednesday it agrees to pay Singapore-listed company Creative Technology Ltd. 100m USD to settle a dispute over patented technology on Apple's iPod music player.

The agreement gives Apple a license to use a Creative patent in its music player and other products and settles all legal disputes between the two companies, according to media reports.

The legal battle began earlier this month. Creative went to the U.S. courts and the U.S. International Trade Commission, to accuse Apple of infringing on its patent by using the technology in iPod and Nano players.

"Creative is very fortunate to have been granted this early patent," Apple chief executive Steve Jobs said in a statement. He said the settlement resolved all of Apple's differences with Creative, including five lawsuits currently pending between the companies.

"We want to move beyond the legal issues and get back to innovating," adding that the cost of litigation could have risen to "tens if not hundreds of millions of dollars," Apple spokeswoman Katie Cotton said.

Creative Chairman and CEO Sim Wong Hoo called the settlement "amicable."

The settlement had a bigger impact on Creative, which has a market capitalization of less than 500 million U.S. dollars. Creative will begin marketing its own line of iPod accessories as part of Apple's "Made for iPod" program.

The announcement came after U.S. stock markets closed. Apple stock closed Wednesday at $67.31, down 31 cents from the previous day. In after-hours trading on the Nasdaq Stock Exchange, Apple lost another 16 cents, Creative rose $2.24 to $8.25 in extended trading after closing 5 cents lower at $6.01.

Editor: Yan