Handspring's Palm OS Licence Extended

Posted By: Ed Wednesday, April 11, 2001 10:37:40 AM

Palm and Handspring have just announced that Handspring has extended its license of the Palm operating system until April of 2009. Previously, Handspring's licence was due to expire in 2003 after first licencing the Palm OS in 1998. Financial terms of the deal were not disclosed so we don't know if the licence fee has changed from its current $8 per device.

"I am very happy that we have extended our licensing agreement for Palm OS, a critical component of our current and future products," said Jeff Hawkins, Handspring chairman and chief product officer. "Extending the license ensures that we can continue to build great Palm OS based products for many years to come. It also guarantees that Palm and Handspring will continue to work together to refine and enhance the Palm OS so that it will meet the needs of the rapidly changing mobile computing market."

"We value greatly our relationship with Palm and the ability to use its leading Palm OS," said Donna Dubinsky, Handspring CEO. "The openness and ease-of-integration of the Palm OS allows Handspring to benefit from the advantages of a powerful platform, while adding significant differentiation, such as our Springboard expansion architecture."

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Is the Rumor Dead Now?

Ed @ 4/11/2001 10:59:52 AM #
I sincerely hope that this finally drives a stake through the heart of the rumor that will not die, that Handspring is planning on dropping the Palm OS in the near future. While they may offer non-Palm products in addition, they are fully committed to the Palm OS for at least the next 8 years.

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RE: Is the Rumor Dead Now?
Raishe_werk @ 4/11/2001 12:05:00 PM #
i hope it is dead too. but after working in one of the bigger bureaucracys in the nation (what could be worse than an HMO), i have realized that there is a lot of smoke and mirrors. but this should shut up those self-proclaimed industry expert analysts.



-Raishe
"Monster Pig kills Jesus
More at 11"

Reason for other OS talk

I.M. Anonymous @ 4/11/2001 3:36:40 PM #
This is kinda what I expected. Handspring floats the idea that they MIGHT build on other OSs. Now we find that they were in negotiations to extend their agreement!

I think the comments were used to strengthen Handspings position during negotiations. My guess is that HS has gotten some sort of consessions from Palm as a result of this threat. Some sort of favorable deal among licensees, more control in the future of the OS or something. Ever noticed that any OS upgrade is always introduced in a "Palm" unit. The HS "edge" has an enhanced 3.5 not 4.0 for example. Ditto for the new Sony. This gives "Palm" brand units an advantage. Perhaps equal treatment for HS or something along that line was agreed upon.

What do you think?



hedging for the future

I.M. Anonymous @ 4/11/2001 4:49:19 PM #
The rumors from people who say they've seen what Palm is playing with in their labs suggests they're looking at almost all OS's. This license extension doesn't mean they have to come out with Palm OS products, or that most of their line will be Palm OS products, especially if they just pay a per device royalty with possibly some negligible fee.

However, at the very least, this is part of a move to place their bets on whatever OS will succeed, and a move to keep the 150,000+ Palm developers happy.

It could also mean that Hawkins can help turn the Palm OS into what he really wants it to be... or is it too late for that? Hmm... so many questions, so many uncertainties...

RE: hedging for the future
I.M. Anonymous @ 4/11/2001 5:31:57 PM #
"This license extension doesn't mean they have to come out with Palm OS products, or that most of their line will be Palm OS products,"

We dont know WHAT is in this agreement, do we.

Look at the events-
Handspring "hints" at possibly using other Os's.
Suddenly an extended agreement is reached.

Do you know what an announcement that HS WAS going to build PPCs would do to Palm. It is not that a Handspring PPC itself would constitute the greatest threat to Palm. It would be the "fleeing a sinking ship" impression that this would give that could seriously hurt Palm. If the inventor of Palm has so little faith in what Palm was doing that he is turning to another platform would send a scary message about Palm. Even Palm based HS product would take a hit.

Do I think Hawkins even likes PPC? No. What he was saying is that, "these are my options" if you (Palm)dont give me what I want. Very cleaver. I say it is very likely that along with this extended agreement there is some assurance that HS would not go shopping for a new OS.

We may never know the "details" of this agreement but
lets see if Hawkins EVER hints at other OSs again.


RE: hedging for the future
Ed @ 4/11/2001 5:34:30 PM #
Handspring's co-founder, Donna Dubinsky, said recently that while Handspring may someday expand the number of operation systems they support, "We'll always have at least a major portion of our business in Palm".

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RE: hedging for the future
I.M. Anonymous @ 4/11/2001 6:05:58 PM #
Sides far apart: Buisness 2.0 article, Palm CEO calls Palm seven a "brick" Hawkins seems offended since he designed it. Entire article implies a possible rift between Palm and Handspring.

Sides still far apart: Hawkins says publicly they may go shopping.

Suddenly sides closer: Dubinsky says majority will be Palm OS.

Agreement reached: No more talk of new OS. Mark my words.

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