Apple, Clone Makers Closer To Ending Feud

Apple Computer Inc. and Macintosh clone makers are closer to resolving a dispute over how much Apple can charge them for selling computers based on its Macintosh operating system, people familiar with the talks said Thursday.

Financially struggling Apple had wanted to sharply boost the fees to the licensees, which include International Business Machines Corp., Motorola Inc. and Power Computing Corp.

Apple, based in Cupertino, Calif., has grown concerned that the increasing popularity of the inexpensive clones is stealing from its own Macintosh sales.

Apple’s hard-line stance raised fears that it was trying to shut out the clone makers’ business, which depends on selling cheap machines. But the company now appears to be moderating its position, according to industry sources, who spoke on condition of anonymity.

“We are finding a middle ground,” said an executive following the negotiations.

An Apple spokesman declined to comment on the talks, except to say that Apple continues to support the cloning of its computers. “We foresee licensees will continue to play a prominent role in the Mac OS platform,” said spokesman Russell Brady.