3Com, Microsoft shake hands

3Com and Microsoft have settled their disagreement over Microsoft's use of the word "palm," the companies announced today.

The pending suit, filed by 3Com against Microsoft in France, Italy, and Germany, asserted that Microsoft's PalmPC was too close in name to 3Com's PalmPilot.

Today, the companies "amicably" agreed that Microsoft will commence referring to its diminutive devices based on its Windows CE operating system as "palm-sized PCs.?

Microsoft said it will initiate a transition to the new verbiage when it ships the next generation of its Windows CE devices next month. Under the terms of the agreement, existing inventory with the PalmPC label may be sold until new devices are available.

3Com has said that there is no problem with the use of the word palm to describe the general category of handheld devices, but that it is a trademark infringement when used as a product name.