Published: May 24, 2005, 7:05 AM PDT

By Matt Loney

Special to CNET News.com

update PalmOne, which makes handhelds bearing the same name, plans to change its name to Palm later this year, the company said Tuesday.

At that time, its product line, which currently includes the LifeDrive, Treo, Tungsten and Zire devices, will be branded under the Palm name.

The name change follows an agreement between PalmOne and PalmSource, the software company that was spun off from parent company Palm in October 2003. Following the spinoff, Palm changed its name to PalmOne and continued to concentrate on hardware.

At the time the two companies created a third company, called Palm Trademark Holding, of which PalmSource held a 55 percent stake. That stake will now be transferred to PalmOne for $30 million, the companies said.

PalmOne also renewed its operating system license from PalmSource through 2009 for a minimum royalty of $148.5 million.

The agreement comes amid upheaval at PalmSource. David Nagel, its CEO, resigned Sunday.

As part of the agreement, PalmOne has granted PalmSource certain rights to Palm trademarks for PalmSource and its licensees for a four-year transition period, but the companies have not said what will happen after that.

A new logo will be unveiled later this summer, said PalmOne. It is not clear whether this will entail changing the current practice of using a lower case ``p`` and the number ``1`` in place of the letter ``l.``