Creative Technologies (CREAF) shares have skyrocketed in after-hours trading on news that the company has reached a settlement with Apple (AAPL) of patent litigation over the iPod’s user interface.

Apple will pay Creative $100 million; it can recoup a portion of its payment if Creative is successful in licensing its patent to others. Creative also joins Apple’s “Made for iPod” program and will be announcing their own iPod accessory products later this year. The deal settles five pending lawsuits between the two companies. Creative says it expects to take a gain of 85 cents a share in the September quarter to reflect the settlement.

On the news, Creative shares have soared $2.48, to $8.49, an increase of 41%. With about 83.2 million shares outstanding, the settlement represents a gain of roughly $1.20 a share, or about half of the jump in the company’s share price this afternoon; presumably investors are placing substantial value on the company’s new iPod peripherals business. Apple shares, meanwhile, are down 16 cents after hours, at $67.16.