$44-million USD for a perpetual Palm OS Garnet license

Palm this week announced that it has purchased a perpetual license
agreement with ACCESS Systems Americas, Inc. (previously known as
PalmSource Inc). In the agreement Palm will be able to use the source
code of Palm OS Garnet in various devices without much limitation. The
agreement will allow Palm some flexibility developing future products
without having to worry about royalty fees.

The Palm OS Garnet code base will also be available to Palm for
modification as Palm sees fit to innovate. Palm also mentioned that the
OS is available to it to use in whole or in part in any device it
chooses. Usually, such flexibility comes at high royalty costs but with
a $44-million USD payment Palm said it no longer has to worry.

According to the press release: Just as it will continue to enhance
Palm OS, Palm will continue to support and further innovate on its
implementation of Windows Mobile 5.0 Pocket PC Edition, which it
licenses from Microsoft. By supporting both operating systems, Palm
gives its customers -- from carriers and enterprises to consumers and
small businesses -- a choice of operating environment.

DailyTech previously reported that Palm and Microsoft were already
working together on developing Windows Mobile PDA products. With the
new license of Palm OS, Palm will be developing and producing products
in both platforms depending on market needs.

In regards to financial details Palm said that it will pay ACCESS in
its 3rd fiscal quarter of 2007. The payment will be a lump sum onetime
payment of $44-million USD. Palm also secured a license extension for
use of current Palm OS technologies and software across its line of PDA