Palm, which launched the Pre as an iPhone competitor, became the first non-Apple device that could connect to iTunes directly -- by pretending to be an iPod or iPhone.
Apple quickly responded by crippling that function in a software update.
But Palm used a similar workaround and updated the Pre's software so the handset gave out Apple's USB hardware vendor code assigned by the USB Implementers Forum, an industry standards group.
In July, Palm complained to the group, saying that Apple was improperly using its USB vendor code to block competitors. But the group disagreed in a letter sent to both companies.
The letter also warned that if Palm updates the Pre's software to include Apple's vendor code -- a move Palm indicated in its complaint that it planned to make in order to restore the iTunes feature -- it would violate the group's rules.
The iTunes battle is part of a larger rivalry building between the two companies. Palm CEO, Jon Rubinstein, once was an executive at Apple and oversaw the iPod.
