Psion was awarded a trademark for the term in 2000 but earlier this year Intel asked a US court Intel to cancel the trademark, saying the term was being widely used to describe a new category of small, low-cost laptops that run basic applications, and not just devices made by Psion.
It was then rumoured that Psion had hit-back by counter-suing Intel, claiming its use of the term "is likely to cause confusion, to cause mistake, and to deceive consumers".
However, Psion has since revealed it is withdrawing the trademark and settling with Intel, although both parties declined to reveal the details of the settlement. Intel also said it wasn't taking any level of liability in the case.
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See also: Dell takes on Psion to save the netbook