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Monday, May 26, 2008
Asustek Files Suit Against Gigabyte For Defamation

Asustek has finaly lodged a formal complaint with Taiwan's Fair Trade Commission (FTC) against Gigabyte Technology accusing Gigabyte of "defamatory acts."

Asustek reported to the FTC on May 22 that Gigabyte attempted to harm the company's reputation by making, false accusations that Asustek has been misrepresenting or exaggerating the capabilities of its EPU power saving technology used in its motherboards.

During a company-sponsored media event earlier this month, Gigabyte delivered a presentation in which it compared its own DES technology against EPU and also questioned the validityof some of the claims and performance figures Asustek has published. Asustek has reacted to this presentation by saying that Gigabyte does not have a full understanding of its engineering design and methods and so the accusations made were false.

Asustek also said that in a press briefing presentation, Gigabyte used a photograph with blown-up (exploded) capacitors and led the audience to believe it was an ASUS product, to support its false allegations that ASUS uses questionable quality components. However, the image was found to be taken from a photograph of a VGA card manufactured by another vendor. "The action of misrepresenting a third party product to be an ASUS product is truly defamatory and clearly outside the realm of decent competition," Asustek said.

"Hence, while it is common to have competition among companies, the use of the above mentioned methods are defamatory and condemnable." Asustek said. "Asus deeply resents Gigabyte?s action."

On May 22nd 2008, ASUS has reported such acts to the Fair Trade Commission of Taiwan. One day later, the company has officially filed a lawsuit against Gigabyte for those defamatory acts.

Asustek and Gigabyte will both showcase their products at Computex 2008 next month. Two years ago, the companies had failled to aggree on a joint venture company that could allow them to sell motherboards and graphics cards under the brand "Gigabyte United".

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