Palm Separates Software Business Into New Unit

Palm Inc., the No. 1 maker of electronic organizers, separated its Palm OS business into a wholly owned subsidiary to license the software for hand-held computers.

Palm, which makes hand-held computers, also makes the Palm OS software used on more than 20 million hand-held computer devices.

Palm said that as of November, 82% of all hand-held computers use the Palm operating system. Palm, which also licenses the operating system to other device makers such as Sony Corp. and Handspring Inc., doesn’t want to compete with its own customers. Now it, too, will have to license the software from Palm OS for its devices.

Palm OS Chief Executive and President David Nagel will head the business, the company said.