Psion Teklogix has answered Intel's claims regarding the chipmaker's right to use the term "Netbook." The Canadian company claims that Intel is being "unjustly enriched" by unauthorized use of the trademark.
Psion Teklogix Netbook Pro
(Credit: Psion Teklogix)Last week, Intel filed for a declaratory judgment against Psion Teklogix, claiming that the the term "netbook" is a "widely used generic term that describes a class of affordable computing devices, much like the term 'notebook' or 'ultra-mobile PC,'" Intel said in a statement last week.
Not surprisingly, Psion had a firm response: "Intel has acted willfully and maliciously, has unlawfully attempted to trade on the tremendous commercial value, reputation and goodwill of the NETBOOK mark," Psion said in a court filing in the U.S. District Court Northern District of California.
Ironically, Psion lists a product called "Netbook Pro" as discontinued on its Web site. It describes the product as having the "virtues of a larger laptop device such as a large screen, full keyboard and multiple communications ports."
Psion did not use the Netbook trademark on laptop computers for five consecutive years following the date of registration in 2000--apparently a legal requirement--mostly because Psion's mobile computers did not succeed in the market and were discontinued, according to Intel.
Psion denies its discontinued selling laptop computers under the mark netbook in approximately 2003, as Intel alleges. In October 2003, Psion launched the Netbook Pro laptop computer and denies that sales of the Netbook Pro have been discontinued.
In the filing, Psion lists retail sales (in dollars) of laptop computers "under Psion's NETBOOK mark" in the U.S. from 1999 to the present. For example, in 2005 Psion cites sales of netbooks at $1,709,433, in 2006 sales were $2,073,207, and in 2007, Psion says retail sales were $586,680.
Psion Teklogix was formed in 2000 when Teklogix merged with Psion PLC, a U.K. company which made handheld "organizers" in the 1980s and 1990s whose tiny clamshell design resembled the smallest Netbooks offered today.
The company is also demanding a jury trial.
Intel has filed for a declaratory judgment against Psion Teklogix in order to continue using the term "Netbook" generically. The legal filing also revealed, as a separate matter, that Google would prohibit search advertisements that include the term "netbook."
Psion Series 5 was launched in 1997
(Credit: Psion)What's the difference between a Netbook and a notebook? More than the design, according to Psion Teklogix.
Psion "purports to be the owner of U.S. Trademark Registration No. 2404976 issued on November 21, 2000 for the mark Netbook for use in connection with laptop computer," according to an Intel legal filing in the United States District Court for the Northern District of California.
Not surprisingly Intel and others, including Dell, don't agree.
"Our view is that the term 'netbook' is a widely used generic term that describes a class of affordable computing devices, much like the term 'notebook' or 'ultra-mobile PC,'" Intel said in a statement Wednesday.
Intel continued: "In order to continue to use the generic term 'netbook' we filed the case. We're asking for a decision to clarify that the use of 'netbook' does not infringe anyone's rights."
Psion Teklogix, which describes itself as a "provider of mobile computing solutions," has been sending cease-and-desist letters to manufacturers, retailers, bloggers and others since December claiming the trademark. Before it became Psion Teklogix, Psion PLC made handheld "organizers" in the 1990s whose tiny clamshell design resembled the smallest Netbooks offered today by Asus or clamshell mobile Internet devices (MIDs) offered by companies like Compal and OQO (see photo).
Part of the Intel counter-claim is that the chipmaker believes that Psion did not use the Netbook trademark on laptop computers for five consecutive years following the date of registration in 2000--apparently a legal requirement. Mostly because Psion's mobile computers did not succeed in the market and were discontinued, according to Intel.
Intel cited a letter in its suit from Psion's legal counsel that asserted that "Intel aided, abetted and otherwise induced manufacturers and retailers" to "use the term 'netbook.'"
The Intel suit for a declaratory judgment also cited the fact that Google informed Intel that it "would prohibit all advertisements that include the term 'netbook' in the ad text." This was the result of a legal action by Psion against Google that "had the immediate effect of effectively ending Intel's (and all others') ability to advertise the netbook category of computers via search engine marketing."
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