Aureal Chooses Marketplace Over Courtroom to Compete with Creative Labs

Strategic Insights -

Aureal Semiconductor Inc., a US-based company, is taking a bold step by challenging Creative Labs to resolve their differences through the marketplace rather than through lawsuits. The move comes after Creative Labs, a subsidiary of Singapore-based Creative Technology Ltd., filed a new lawsuit against Aureal, claiming false advertising and unfair business practices. Aureal's Vice President and General Counsel, Brendan O'Flaherty, emphasizes the need for a level playing field, where consumers can make informed decisions based on accurate product information. The dispute centers around a comparison chart published by Aureal, which was based on publicly available information from Creative Labs. Aureal's Director of Marketing Communications, Bob Safir, stresses the importance of an industry organization that promotes a fair and transparent marketplace.

Key Takeaways:

  • Aureal Semiconductor Inc. is challenging Creative Labs to resolve their differences through the marketplace rather than through lawsuits.
  • The dispute centers around a comparison chart published by Aureal, which was based on publicly available information from Creative Labs.
  • Aureal emphasizes the need for a level playing field, where consumers can make informed decisions based on accurate product information.
  • The company's Director of Marketing Communications, Bob Safir, stresses the importance of an industry organization that promotes a fair and transparent marketplace.
  • Aureal's A3D audio technology allows users to hear interactive entertainment in a 360-degree space around them, creating a realistic, three-dimensional, immersive audio experience.
  • The company has made significant inroads in providing the PC marketplace with advanced PCI-based audio solutions, including Aureal's patented and award-winning A3D positional 3D audio.

Statistics:

  • Aureal has received numerous market wins, including major PC audio card vendors and top-tier PC OEMs.
  • The company's A3D audio technology is featured in over 100 games, including Unreal from Epic Megagames/GT Interactive, Incoming from Rage Software, and Jedi Knight from LucasArts.
  • Aureal develops audio processing semiconductor chips, audio processing boards, and licenses technology designed to define and improve advanced audio standards in the marketplace.

Sources:

  • Aural Semiconductor Inc. press release, October 1.
  • Aureal Semiconductor Inc. website.
  • IASIG (Interactive Audio Special Interest Group) website.
  • Private Securities Litigation Act of 1995.