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Asustek Expects No Impact from IBM's Accusations

Date: 2008-1-12

[Abstract]
   Asustek Computer, a leading supplier of computer components and notebooks, said in a statement at Taiwan Stock Exchange (TSE) that it had never violated patents of IBM Corp. and that it is abl...

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Asustek Computer, a leading supplier of computer components and notebooks, said in a statement at Taiwan Stock Exchange (TSE) that it had never violated patents of IBM Corp. and that it is able to proof it. As a result, no material impact is expected on the company.

“Asus will work with patent lawyers to cooperate with ITC for its investigation on IBM’s complaints. Based on the evaluation of patent lawyers and industry experts, Asus is very confident that Asus had not made any violation to IBM’s patents. In addition, Asus does not expect there will be any material impacts,” the statement with TSE by Asustek Computer reads.

Back in mid-December ’08 IBM said it had filed a complaint against Asustek Computer and its subsidiary in North America with the United States International Trade Commission. The inventor of the personal computer (PC) claims that certain products and components which Asus makes and sells infringe its patents. IBM demands ban for those products from import into the U.S.

In particular, IBM alleges that certain products by Asustek infringe its patents that cover PC power supply (U.S. Patent No. 5,008,829), automatic fan speed control (5,249,741) as well as a method and hardware that make a cluster of computers appear as a single host on network (5,371,852). If the first two patents may be infringed by Asustek’s notebook computers, barebone systems, servers as well as system components, then the third one is may be infringed by Asus network equipment and servers.

In the same statement Asustek notified its shareholders that the spin-off of Pegatron and Unihan companies has been completed and now Asustek Computer is a company that concentrates solely on own-brand products.

“Asus had become a pure brand company after transferring the ODM related operation to Pegatron and Unihan Corporations. In general, Asus clients and senior management are positive about the spin-off event. Asus, Pegarton and Unihan will continue seeking growth in every business line, and expect to develop each company to become a world-class enterprise in the future,” the statement reads.

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