Microsoft will stop using the term "PalmPC" to describe its smallest Windows CE-based devices, and will instead use the term "Palm-sized PC". The change is the result of lawsuits brought against Microsoft by 3Com, makers of the successful PalmPilot handheld PC. 3Com argued that the term PalmPC would cause confusion in the marketplace: Microsoft's palm-sized devices look almost exactly like the PalmPilot, but run Windows CE. Microsoft changed the name and 3Com dropped the suits.

"Microsoft and 3Com have a strong, long-standing business relationship," said Paul Maritz, Microsoft's vice president of systems. "This agreement further strengthens that relationship and allows us to move quickly beyond our differences over this particular issue."

Interestingly, 3Com's next generation PalmPilot is dropping the "Pilot" moniker, because of a dispute with Pilot pens. The new version will simply be called "Palm III"