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Palm to stop licensing Palm OS by this December but Microsoft is standing by

According to reports, Palm may have some issues coming up at the end of this year. Due to a disagreement with PalmSource -- the developer and supplier of Palm OS -- Palm has decided to stop paying royalties to PalmSource. Palm said that PalmSource had failed to meet certain obligations that were promised. At Palm's recent annual report, the company announced that after December 2nd, all royalty payments to PalmSource will stop.

Despite the news, Palm said it would continue developing products based on current versions of Palm OS. Without paying royalties to PalmSource, newer versions of Palm OS will not be available to Palm. Concerns on whether or not Palm would even be able to use current versions of Palm OS once the license expires were brought up but Palm said that it was negotiating with PalmSource "to expand our development and distribution rights to the current version of the Palm OS."

Interestingly, DailyTech recently reported that Palm had been collaborating with Microsoft on next-generation devices. The company announced that due to increased competition in the hand held market -- specifically with RIM -- it had created a partnership with Microsoft to use its Windows Mobile OS. The decision by Palm to discontinue paying PalmSource licensing fees may have more to do with its partnership with Microsoft than anything else. The new Windows Mobile-based Treo will be arriving in Europe first on Vodaphone's network.




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