Treo maker PalmOne Inc. will return to its original brand with the $30 million purchase of full rights to the Palm logo. The announcement comes on the heals of news that PalmOne renewed its license for the Palm operating system in a deal worth at least $148.5 million.
PalmOne’s stock was up more than 3 percent to $28.25 per share after the announcements. Stock for PalmSource, which manages the Palm OS, leapt more than 13 percent to $10.07 per share.
First, PalmOne said it will purchase PalmSource’s 55-percent share in the Palm trademark for $30 million, which it will pay over three and a half years. The companies split ownership of the logo when they separated in 2003. PalmOne said it will change its name back to Palm Inc. later this year, and its new devices will feature the Palm logo instead of PalmOne.
“The letters P-A-L-M reflect a prized brand with significant customer awareness and earned loyalty,” said Ed Colligan, PalmOne’s 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.”
Interestingly, PalmOne said it granted PalmSource “certain rights” to Palm trademarks for a four-year transition period. Thus, other Palm OS licensees will be able to use the Palm logo on their products during the period. Further, PalmSource said it will adopt a new brand identity during that four-year period. The company did not provide details.
In a separate deal, PalmOne renewed its agreement with PalmSource for rights to the Palm OS through 2009.
“We greatly value our relationship with PalmOne and its exceptional Palm OS-based smart phones and mobile computing products,” said Patrick McVeigh, interim chief executive officer of PalmSource. McVeigh just days ago took over the CEO spot after the company’s former chief executive stepped down for unexplained reasons. “We look forward to working with PalmOne on future mobile products that provide customers with state-of-the-art capabilities.”
PalmOne made its announcement in conjunction with PalmSource’s developer’s conference in San Jose, Calif. Other companies announcing new Palm-related products, services and partnerships include Cingular Wireless, Motricity, Smart Global, Wacom and others.
