PC manufacturer Psion Teklogix has hit back at Intel after it backed Dell and filed a legal petition to remove Psion's trademark of the term 'netbook'.

Netbook is the term laptop manufacturers use to describe low-cost and low-spec systems that are ideal for surfing the web on-the-go. Psion registered the term in the late 1990s and even issued warning letters to PC manufacturers last year in a bid to stop them using it.

However, last month Dell filed a Petition for Trademark Cancellation with a US court, claiming the brand is not offering any products in the 'netbook' market and has no plans to do so in the future.

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According to Save The Netbooks, Psion Teklogix is counter-suing Intel, claiming its use of the term "is likely to cause confusion, to cause mistake, and to deceive consumers".

"Intel has used the netbook designation in interstate commerce in connection with the promotion and sales of computer chips for use in laptop computers," says Psion in its court filing.

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"On information and belief, Intel willfully and maliciously has encouraged, aided and abetted other manufacturers and retailers in the electronics industry to adopt and use the term netbook as a generic name for a type of laptop computer in an effort to destroy Psion's trademark rights."

Psion doesn't stop there either. The court documents also reveal Psion has accused Intel of cybersquatting, after it registered the domain name www.netbook.com.

"Psion respectfully demands a trial by jury on all issues triable by right to a jury."

See also: Intel's Nvidia licence battle goes to court