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After much hype surrounding PalmSource’s ALP (operating system) for the Treo, it looks like Palm has decided to pull out of the co-development agreement.  According to Palm’s annual report, “PalmSource did not timely meet certain of the milestones under the co-development agreement, relieving us of our obligation to make minimum royalty payments under the license agreement after calendar year 2006.” This shouldn’t put too much of a damper on the relationship between the two companies since they’re already in “negotiations with PalmSource to expand our development and distribution rights to the current version of the Palm OS.” Sounds a little like Palm’s looking to begin development of the OS on their own, leaving PalmSource in the dust.

Read [Clieuk]
Via [Engadget]

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