Microsoft to modify "PalmPC" name, bowing to 3Com
Reuters, Wednesday, April 08, 1998 at 20:38
SANTA CLARA, Calif., April 8 (Reuters) - Microsoft Corp.
(NASDAQ:MSFT) on Wednesday said it agreed to resolve a brand-name
dispute with 3Com Corp. (NASDAQ:COMS) 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.
kourosh@tibco.com))
Copyright 1998, Reuters News Service |
