Palm Inc.

A patent infringement lawsuit was filed by Xerox Corp. in 1997 against a predecessor company to Palm Inc., claiming that the handwriting-recognition technology sold as "Graffiti" and formerly used in some Palm devices infringed on a Xerox patent for a system known as Unistrokes. The handheld computer maker replaced Graffiti with an updated system called Graffiti 2 in 2003. Palm has agreed to pay $22.5 million to Xerox Corp. that will cover a fully paid-up license for three Xerox patents, including Unistrokes. Both Palm Inc. and Xerox Corp. agreed to a seven-year mutual covenant not to sue within mutually agreed fields of use. (Jun-28-06) [MSN MONEY]

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