Good Will Instrument (TPE:2423) filed a lawsuit against Chroma ATE with Taiwan's Intellectual Property and Commercial Court, according to a Wednesday Taiwan Exchange filing.
Shares gained marginally in Thursday's midday trade.
The company alleged Chroma ATE used designations identical or similar to Good Will's "ATS-8000" model name in marketing its "8000" series.
The company also accused Chroma ATE of spreading false infringement claims in the market, which it says violated the Fair Trade Act and harmed its business reputation.
Good Will said it has engaged legal counsel to pursue the case and defend shareholder interests.