PalmOne buys right to the name Palm from PalmSource

PalmOne buys right to the name Palm from PalmSource

PalmOne happens to be one of the leaders of the PDA Manufacturing market with products like the Treo and recently launched LifeDrive. They have now decided to buy all rights to the brand name ‘Palm’ by paying a sum of USD 30 million to the software maker PalmSource Inc. The two companies have co-owned the term since quite sometime.

The company in addition also renewed their operating system license from PalmSource for few more years. The agreement now will last until 2009 and would cost a minimum amount of USD 148.5 million in royalty. The news helped Shares of PalmSource to jump to a three-month high in morning trade.

PalmOne also announced plans to change their name to Palm Inc. to cash in on the brand value of the term Palm now that they own full rights to its usage. And they would be using the same brand name on all their products in the future.

PalmOne currently using PalmOS as their Operating Systems on all their products. However, they are open to move towards alternative options if the market demands require them to. This includes possible movement towards a Linux based Operating System as their ex-CEO David Nagel wanted to. The company is facing massive competition from the rivals like Research in Motion and Microsoft.

PalmOne and PalmSource split back in October 2003.