IBM and Apple close to signing licensing pact

INTERNATIONAL Business Machines is understood to be close to signing a pact with Apple Computer to license the Macintosh operating…

INTERNATIONAL Business Machines is understood to be close to signing a pact with Apple Computer to license the Macintosh operating system. The agreement is likely to be signed in the next few days with the IBM unit that develops the PowerPC chip and would be similar to a pact that Apple signed in February with Motorola's computer systems unit, sources said.

The pact would be another move in Apple's aggressive push to license its Macintosh operating system, one of the key goals set by Mr Gil Amelio, Apple's new chief executive, when he took over the company in early February.

Under the agreement, IBM will not build Macintosh clones itself, but will have the right to sub-license the Mac operating system to other computer makers seeking to develop Mac clones based on the PowerPC chip.

An IBM spokesman declined to comment. Apple officials were not immediately available. The negotiations for the pact were reported is yesterday's edition of USA Today.

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The move could help Apple, which last month warned investors it will lose 5700 million (£445 million) in the quarter ended March 29th and is trying to work off a staggering 52 billion surplus of inventory.

One source familiar with the talks said the deal would provide one-stop shopping for companies seeking to clone the Apple Macintosh, enabling them to buy the PowerPC, chip and license the Mac operating system from IBM, rather than having to negotiate a separate pact with Apple.