Microsoft Corporation will drop the name "Palm PC" that describes Windows CE devices that fit in your hand, though a new name hasn't been decided on yet. Microsoft is dropping the name in response to a lawsuit from 3Com, which produces the PalmPilot line of electronic handheld personal information managers. 3Com charged that the name "Palm PC" would cause confusion in the marketplace, as the product is so obviously a rip-off of the PalmPilot, which practically owns the handheld market right now.

"Microsoft will no longer use the Palm PC name. We expect an announcement in the next few days. There is a good likelihood \[there will be a new\] name for the devices," said Eric Benhamou, 3Com's president and CEO.

As a result of the settlement, 3Com will drop the copyright infringement lawsuits it filed against Microsoft and the hardware companies that will make the new palm-sized Windows CE devices. Microsoft refuses to comment at this time