Palm (Nasdaq: PALM) is starting to look desperate.

The latest update to the Palm Presoftware fixes a couple of bugs, including a Microsoft (Nasdaq: MSFT) Exchange syncing flaw that was introduced by last week's update. But it also hacks into the Apple (Nasdaq: AAPL) iTunes library again -- in the same unsupported way Palm has used before.

The Pre puts on a mask and pretends to be an official iPhone whenever iTunes asks for identification. That way, Palm's handset can simply rely on Apple's own software to handle decoding and copying of those music files. Since Apple's DRM technology is proprietary, other devices such as a BlackBerry phone get only unprotected songs, but the Pre's workaround can play everything iTunes can handle. Sweet, I know. But it's also against published policy of the USB Implementers Forum (USB-IF), and that standards-setting body is losing patience with Palm's shenanigans.

Rest assured that the next iTunes update will break the Palm's compatibility again. It seems obvious to me that Apple has the right to keep doing this, and that Palm needs to simply write its own syncing software if the company wants to keep working with USB connectors. The last Pre updateappeared to move in that direction, as it left Apple's latest shot in this battle unreturned while adding support for the Amazon.com (Nasdaq: AMZN) MP3 store while on Sprint 's (NYSE: S) network. And now we're back to Square One.

I'm cool with Palm giving its customers a way to enjoy their existing iTunes songs, and you could argue that iTunes compatibility gives the Pre an advantage over other phones that don't have this feature. But Research In Motion (Nasdaq: RIMM) has an iTunes sync feature as well-- and that one doesn't break any established standards or policies. Palm's method does.

Palm is a member of the USB-IF, where executives from Intel (Nasdaq: INTC) and Hewlett-Packard run the show. It is unclear exactly what sanctions the Forum can impose on Palm for breaking the rules, but the way things are going, we might soon find out.

If Palm is willing to go that far just to gain a fairly small advantage in the consumer marketplace, then it seems like the company is running out of options.  Do you agree? Disagree? Let me know in the comments below.

This article was originally published as Give It Up, Palm!on Fool.com

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