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According to IBM Asustek continued to sell computers using its technology after a licensing agreement between the companies expired on 31 December, 2004.

IBM claims the patent infringements occur in Asustek's own brand notebooks, servers, routers and some components, as well as in products the manufacturer makes for other brands, though it refused to name the patents specifically or comment on how these brands would be affected by the complaint.

Asustek is denying the allegations.

"We have consulted our lawyers in the US and they have concluded that the complaint has no merit," says Beck Lee, a spokesman for Asustek in Taipei.

Asustek has set a goal of becoming the world's fifth-largest notebook vendor by 2010, a goal boosted by the success of the Eee PC, which it claims has already sold 5 million units globally.