Reuters
Palm erases 'Graffiti' in wake of Xerox suit
Monday January 13, 6:10 pm ET
By Franklin Paul
NEW YORK, Jan 13 (Reuters) - Just when millions of users have finally mastered the quirky "Graffiti" handwriting recognition on their handheld computers, Palm Inc. (NasdaqNM:PALM - News) on Monday said it plans to switch to a simpler system.
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The company on Monday set plans to build new handwriting recognition technology, which lets users enter data by writing alphabet-like symbols on the screen, into its its software, spurred by a long-standing patent infringement legal battle with office equipment maker Xerox Corp. (NYSE:XRX - News)
PalmSource, the software arm of dominant handheld computer maker Palm, said it signed an agreement with Communication Intelligence Corp. (NasdaqSC:CICI - News), to license CIC's "Jot" handwriting recognition software, and embed it in its Palm OS operating system. Terms of the agreement were not disclosed.
CIC's "Jot" features an alphabet more natural and easy-to-learn than the original "Graffiti," for which an upside down capital L represented the letter "T," and a pretzel-like swish stood for the letter "K."
"The Xerox lawsuit prompted us to take a fresh look at all the handwriting recognition alternatives," said Palm spokeswoman Marlene Somsak. "We made a decision that Jot is better technology ... than Graffiti."
Xerox in 1997 sued U.S. Robotics, later acquired by former Palm parent 3Com, over the "Graffiti" handwriting recognition technology that it said was invented at its Palo Alto Research Center.
In 2002, a court ordered Palm to post a $50 million bond following a ruling that Palm infringed upon Xerox's handwriting recognition software patent. Last week in Washington D.C., Palm requested an appeal. A Xerox spokesman said a three-judge panel is expected to render a decision in two to four months.
Palm will offer "Graffiti 2 powered by Jot" to its clients, makers of handheld computers and "smart" mobile phones such as Samsung, Handspring Inc., and Palm Solutions, the hardware branch of Palm Inc.
Many current handheld computer users already utilize "Jot" and other handwriting products, which CIC sells separately. Palm said that from now on, it would not offer the older version of "Graffiti" to its licensees.
"Let's says Palm wins the Xerox lawsuit ... we are not returning to Graffiti," Somsak said. "We believe that 'Graffiti 2' is superior."
A Xerox representative declined to comment on the specifics of Palm's handwriting pact. However, when asked if Xerox had any plans to target CIC for its handwriting recognition technology, he said the company is focusing for now on the Palm case.
"If they (Palm) change, we will review it, but we know that we have several years of damages with this handwriting recognition system to address, and for now, we are focused on that," said Xerox spokesman Bill McKee.
Shares of CIC closed at 38 cents, up 3 cents, or about 8 percent on the Nasdaq on Monday. Palm shares rose 73 cents, or about 4 percent, to $18.66, while Xerox shares gained 10 cents to $8.75.
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