How would you like to be Chief Competitive Officer at a company? Palm's Michael Mace was one that was tasked with taking on the Pocket PC threat. This MSNBC article is a great read, and it dismisses any notion that Palm stayed still in the face of the Microsoft threat.
Through reports on "The Zen of Kicking Microsoft's Butt" and signing licensees like Sony and Nokia on, Palm worked fervently to "keep ahead of the Microsofts."
After hearing that Gates himself went to a store and asked about the Palm organizers, a "Tiger Team" at Palm was formed that worked to post Palm ads at key locations and have Palm employees at Pocket PC demonstrations