From palmOne's press releases:

SUNNYVALE, Calif. and MILPITAS, Calif., May 24 /PRNewswire-FirstCall/ -- PalmSource (Nasdaq: PSRC) and palmOne Inc. (Nasdaq: PLMO) today announced that palmOne has renewed its license of the Palm operating system. As part of this new agreement, palmOne can continue to develop and market smartphones and other mobile devices based on the industry leading Palm OS(R) through 2009. Under the terms of the agreement PalmSource will receive minimum royalty payments of $148.5 million, which includes $65 million for calendar years 2007 to 2009 subject to meeting certain development milestones.

The companies also announced today that PalmSource has sold its interest in the holding company that owns the trademarks of the Palm brand, in exchange for $30 million to be paid by palmOne over three and a half years. Over the next four years, PalmSource will retain rights to use the PalmSource name and certain related Palm trademarks for itself and its licensees. PalmSource will also adopt a new brand identity during this period.

With the new license agreement in place, PalmSource and palmOne can continue to collaborate and bring innovative Palm Powered(TM) products to market. Over the years palmOne has developed a full line of successful Palm Powered smartphones and mobile devices, including the Treo(TM) smartphone, Tungsten(TM) and Zire(TM) families of handheld computers and the LifeDrive mobile manager. Palm Powered phones are supported by more than 40 of the world's top wireless carriers, making Palm OS a leading platform for the development and deployment of phones and wireless devices.

"Extending our license of Palm OS is an essential component of our success and ensures we can continue to build great Palm OS based products for years to come," said Ed Colligan, palmOne president and chief executive officer. "The openness and ease-of-integration of the Palm OS allows palmOne to benefit from the advantages of a powerful platform."

"We greatly value our relationship with palmOne and its exceptional Palm OS based smartphones and mobile computing products," said Patrick McVeigh, interim chief executive officer of PalmSource." We look forward to working with palmOne on future mobile products that provide customers with state-of-the-art capabilities."

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MILPITAS, Calif., May 24 /PRNewswire-FirstCall/ -- palmOne, Inc. (Nasdaq: PLMO) today announced an agreement with PalmSource, Inc. for palmOne to acquire full rights to the brand name Palm. The brand had been co-owned by the two companies since the October 2003 spin-off of PalmSource from Palm, Inc.

palmOne will pay PalmSource $30 million for PalmSource's 55 percent share of the Palm Trademark Holding Company. Payment will be made in installments over 3.5 years. palmOne will change its company name to Palm, Inc. later this year. As part of the agreement, palmOne has granted PalmSource certain rights to Palm trademarks for PalmSource and its licensees for a four-year transition period.

"The letters P-A-L-M reflect a prized brand with significant customer awareness and earned loyalty," said Ed Colligan, palmOne president and chief executive officer. "Innovation, power, ease of use, and elegance all are attributes of the brand, and we intend to invest to turn what is a strong name today into a household word synonymous with leadership in mobile computing."

A new logo and design treatment will be unveiled later this summer. Mobile-computing products to be launched in the fall are expected to feature the name Palm instead of palmOne.