Posted on 24-May-2005 22:46.
Filed under: News
palmOne, Inc. has announced an agreement with PalmSource, Inc. for palmOne to acquire full rights to the brand name Palm. The brand had been co-owned by the two companies since the October 2003 spin-off of PalmSource from Palm, Inc.
palmOne will pay PalmSource US$30 million for PalmSource's 55 percent share of the Palm Trademark Holding Company. Payment will be made in installments over 3.5 years. palmOne will change its company name to Palm, Inc. later this year.
Over the next four years, PalmSource will retain rights to use the PalmSource name and certain related Palm trademarks for itself and its licensees. PalmSource will also adopt a new brand identity during this period.
"The letters P-A-L-M reflect a prized brand with significant customer awareness and earned loyalty," said Ed Colligan, palmOne president and chief executive officer. "Innovation, power, ease of use, and elegance all are attributes of the brand, and we intend to invest to turn what is a strong name today into a household word synonymous with leadership in mobile computing."
A new logo and design treatment will be unveiled later this summer. Mobile-computing products to be launched in the fall are expected to feature the name Palm instead of palmOne
At the same time, palmOne announced that it has renewed the Palm OS license from PalmSource. As part of this new agreement, palmOne can continue to develop and market smartphones and other mobile devices based on the Palm OS through 2009. Under the terms of the agreement PalmSource will receive minimum royalty payments of US$148.5 million, which includes US$65 million for calendar years 2007 to 2009 subject to meeting certain development milestones.