Palm to Switch Handwriting Software

Palm Inc. said it would dump its Graffiti handwriting software for its hand-held computers in favor of a system similar to one used on Microsoft hand-held computers.

The Sunnyvale, Calif.-based firm said devices shipped later this year would come with “Graffiti 2 powered by Jot.” Palm developed the system with Redwood City, Calif.-based Communication Intelligence Corp.

The switch could ease a legal dispute with Xerox Corp., which sued Palm in 1997 because it said Graffiti was derived from a Xerox patent for computerized handwriting. A federal appeals court heard the case Jan. 6 but has not issued a ruling.

Palm closed up 73 cents at $18.66 on Nasdaq.