The Power PC, which is still used largerly in Apple's Macintosh computers, was recently hit by news that IBM won't adapt its OS/2 operating system to the Power PC. Exexutives at IBM, which produces its own version of the chip as part of an allience with Motorola and Apple, have also said the chip is suited to workstations, not desktop computers like the Power Mac.

This licensing agreement means the Mac industry is now able to develop a wide variety of hardware solutions based on Macintosh and PowerPC Platform (or CHRP) systems. This parallels the PC industry, where different hardware components can be used by manufacturers to build systems.

"With this agreement, we enter a new era in our relationship with Apple," said Michael J. Attardo, general manager, IBM Microelectronics Division. "Apple has been our valued partner in PowerPC development and defining the PowerPC Platform specification. Today, we move forward to a relationship focused on enabling the industry for Mac OS."

"Licensing the Mac OS to IBM reinforces our business strategy of making the Macintosh platform available to a broader number of customers," said George Scalise, executive vice president and Chief Administrative Officer, Apple Computer, Inc. "IBM is already involved with us in a strategic alliance for the PowerPC microprocessor and the PowerPC Platform and has solid board and system manufacturer relationships worldwide that can be leveraged to proliferate the benefits of the Mac OS."