Microsoft to Modify ‘PalmPC’ Name

Microsoft Corp. said it agreed to resolve a brand-name dispute with Santa Clara-based 3Com Corp. and will modify its use of the word “Palm” in marketing its hand-held computers. In a rare retreat, Microsoft will no longer refer to its class of tiny computers as “PalmPCs.” Instead, its worldwide marketing will use “Palm-size PCs.” In return, 3Com, which sells the popular PalmPilot hand-held computer, agreed not to pursue any lawsuits. Microsoft, the world’s biggest personal computer software company, rarely backs down from lawsuits or marketing disputes. The Redmond, Wash.-based company said it agreed to resolve the issue because of its “strong, long-standing business relationship” with 3Com, the world’s second-biggest computer networking equipment vendor. In Nasdaq trading, 3Com shares rose 56 cents to close at $32.75, while Microsoft shares rose $1.69 to $88.94.