PalmGear Changes the Way it Pays Developers
Kenny West, CEO of PalmGear, has sent an email to all the developers who list applications on his company's site, informing them of a new payment policy. For months, PalmGear has been behind in payments to its partners, the people and companies for whom PalmGear acts as an online reseller. Starting this month, the company will first pay its partners what it owes for applications sold in the current month. Any money left over will go toward past due balances.
Mr. West said it was behind in its payments to developers because of "expenses associated with an old lawsuit and excessive software development costs incurred in 2000 and 2001 as well as the general downturn in the economy". The lawsuit he mentioned was between PalmGear and one of the venture capitalists behind Handango and was eventually won by PalmGear but only after years of legal wrangling.
According to Mr. West, many of its partners have suggested that PalmGear implement this policy.
Who will be paid first for past due balances depends on numerous factors. Partners who have agreed to discounts or to exclusively list their applications on PalmGear will have first priority. After that, the people who have the oldest outstanding balances will be paid. Those who are still PalmGear's partners will be paid before those who aren't.
Mr. West said, "We believe that this policy will assure that our partners who have stuck with us through our difficult times will receive timely payments for all new sales and will receive priority with respect to payment on past due payables as well as address past due amounts. I would also like to add that we are doing many, many other things to increase our efficiency in many, many areas so as to make the effects as minimal as is possible."
PalmGear, which once virtually owned the Palm software market, has recently faced intense competition from Handango. Late last year it was dealt a blow when Handango took over hosting the Palm Software Connection, the section on Palm's own website that lists third-party software. PalmGear had previously been responsible for this.
Thanks to Greg for the tip. -Ed
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