Creative is offering anyone who has bought an MP3 player in the last 7 years a discount on a new model following a court case over memory capacity.

The class action lawsuit, which has been settled out of court in the US, was over claimed memory sizes of the company's MP3 players.

According to the claim, Creative calculated the capacity using base 10 notation, where a gigabyte is composed of a round billion bytes, rather than base 2 where a gigabyte is 1,073,741,824 bytes, slightly more.

The result meant that the claimed storage size was very different to the actual storage size.

The settlement offers compensation to all US customers who bought a hard disk player, however rather than a cheque in the post, claimants will get money off a new player from Creative.

"As part of the settlement, Creative will make certain disclosures regarding the storage capacity of its hard disk drive MP3 players. In addition, if you submit a valid claim, you will receive either a 50% discount off the price of a new 1GB MP3 player, or a discount certificate good for 20% off the price of any single item," says a summary of the settlement released by Creative.

Those taking up the offer, say Creative, will give up their right to sue the company.