Microsoft to modify "PalmPC" name, bowing to 3Com
SANTA CLARA, Calif., April 8 (Reuters) - Microsoft Corp. (MSFT - news) on Wednesday said it agreed to resolve a brand-name dispute with 3Com Corp. (COMS - news) and will modify its use of the word ''Palm'' in marketing its handheld computers.
In a rare retreat, Microsoft will no longer refer to its class of tiny computers as ''PalmPCs.'' Instead, its worldwide marketing will use ''Palm-size PCs.'' In return, 3Com, which sells the popular PalmPilot handheld computer, agreed not to pursue any lawsuits.
Microsoft, the world's biggest personal computer software company, rarely backs down from lawsuits or marketing disputes. The Redmond, Wash., company said it agreed to resolve the issue because of its ''strong, longstanding business relationship'' with 3Com, the world's second-biggest computer networking equipment vendor.
The dispute centers around tiny computers that fit in a palm. 3Com sells a version called PalmPilot, which is the best-selling handheld computer ever. Last fall Microsoft rattled 3Com with plans to sell a rival machine to be called PalmPC. 3Com sued Microsoft in Italy and Germany over the name.
Executives of 3Com, based in Santa Clara, Calif., alleged that Microsoft was intentionally violating its trademark to ride the popularity of its PalmPilot. Microsoft denied at the time that its purpose was to create confusion.
The settlement ensures that consumers will not confuse the two devices, said Donna Dubinsky, 3Com vice president and head of the Palm Computing unit, which makes the PalmPilot. |
