Split Decision

While ruling that the Creative Technology patent at the heart of long running lawsuit between Creative and Aureal was valid and enforceable, a federal court also decided that Aureal's Vortex and Vortex 2 chip do not infringe on that patent. Kip Kokinakis, CEO and President of Aureal, was pleased with the verdict, "It is a great victory for Aureal, but also a victory for innovation and competition that we did not yield to a company with vast resources and an intent to eliminate our ability to bring new and exciting products to the market. We can now turn our undivided attention to compete in the marketplace where our products and technology speak for themselves." The jury's decision is far from the end of the suit, however. Creative has promised to appeal the infringement decision. "We are pleased that Aureal's remaining defenses concerning the validity of our patent have now been rejected and the patent has been held to be valid and enforceable. We are, of course, disappointed that the jury did not also find infringement," said Creative General Counsel John Danforth. Aureal has also decided to continue the fight. "Aureal also intends to pursue its efforts to invalidate Creative's patent and to have the patent declared unenforceable because it was obtained by inequitable conduct before the patent office," said Aureal General Counsel Brenden O'Flaherty.