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Palm Licenses Palm OS Print E-mail
Written by Adam Gosling   
Wednesday, 13 December 2006
Announcing it has signed a perpetual license with the company formerly known as Palmsource, the maker of the Treo smartphone show's it's not totally committed to Windows Mobile.


PalmSource, which owns the Palm OS operating system and had been spun off from the parent company several years ago, was acquired by Access in September last year.

Access, a Japanese company, paid nearly double what the company was worth at the time and attracted the ire of Motorola which offered nearly as much as Access, but was subsequently duded out of the deal despite claiming to have had its bid accepted by Palmsource.

Since then Access has worked to open up the Palm OS and has continued development of Linux based mobile operating systems and has also signed a few handset makers up to the Palm OS.

The version Palm has licensed is that used in several Palm Treo smartphones. The company is getting access to the source code so under the agreement, Palm has a perpetual license to use as well as to innovate on the Palm OS Garnet code base. Palm will also retain ownership rights in its innovations.

The new agreement also provides Palm flexibility to use Palm OS Garnet in whole or in part in any Palm product, and together with any other system technologies. The company plans to ensure that applications now compatible with Palm OS Garnet will operate with little or no modification in future Palm products that employ Palm OS Garnet as the company evolves it over time to support Palm's product differentiation strategy.

In addition, Palm has secured an expansion of its existing patent license from Access to cover all current and future Palm products, regardless of the underlying operating system.

For all of these rights, Palm will pay Access a total of $44 million, which will be paid in Palm's third quarter of fiscal year 2007, and will be recognised as an expense over the next several years.

This single payment eliminates the requirement for Palm to pay Access continuing royalties of 10s of millions of dollars over the coming years.
www.palm.com
www.access-company.com
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