COPYCENSE

"Shares of PalmSource, the handheld operating system developer, dipped Monday on an investment bank’s report that said key licensee PalmOne will–in addition to using PalmSource’s product–begin using Microsoft’s operating system for handhelds in its Treo line of devices.

"PalmOne representatives disputed the contents of the research note, from Needham & Co. The note said that PalmOne ‘tacitly admitted’ it was working to make Microsoft’s operating system available on the popular Treo line of phones. The devices currently use PalmSource’s Palm OS, and PalmOne is PalmSource’s biggest customer.

"The two companies used to be one firm but recently split from each other, in order to be more flexible."

Richard Shim. PalmSource Takes Hit on Investment Report. News.com. Nov. 1, 2004.

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