May 24, 2005, 10:44 AM — In a move to secure a household name in the personal organizer sector, PalmOne Inc. has agreed to pay PalmSource Inc. US$30 million for full rights to the Palm brand name.
The Palm brand name had been co-owned by the two companies since PalmSource was spun off from Palm Inc. in October 2003.
Under the deal, PalmOne will change its name to Palm Inc. later this year. In addition, the company has granted PalmSource certain rights to Palm trademarks for PalmSource and its licensees for a four-year transition period.
A new logo will be unveiled over the next three months, PalmOne said.
Based in Milpitas, California, PalmOne manufacturers PDAs (personal digital assistants), smart phones and other accessories.
PalmSource, in Sunnyvale, California, develops and sells operating system software for handheld devices.
On Sunday, David Nagel, 60, president and chief executive officer (CEO) of PalmSource, unexpectedly resigned. Patrick McVeigh, 53, appointed in February as senior vice president, worldwide licensing for PalmSource, was named interim CEO in tandem with the board of directors' search for a permanent successor.