Over the second half of 2008, virtually every major computer maker, (and some companies you probably didn’t know made computer), released a netbook. While Acer and Asus topped the sales charts, most of the machines had very similar specs: 9 or 10 9inch displays, Intel Atom CPUs, 160GB hard drives, and so on. Things are starting to change this year as companies begin offering features like touchscreens, GPS, and a wider choice of processors.

Dell wasn’t the only company to challenge Psion’s netbook trademark in court last week. It turns out that Intel is also asking courts to cancel Psion’s trademark, declare that Intel has not been infringing on the trademark and prevent Psion from asserting any rights to the term again in the future.The Intel complaint makes some of the same allegations as the Dell challenge.

There’s been a lot of talk over the last few months about how Windows has been crushing Linux on netbooks. When Asus launched the Eee PC 701 back in 2007, it ran Xandros Linux and open source enthusiasts started proclaiming that netbooks would help Linux finally make it as a mainstream consumer-oriented operating system. It’s cheaper for computer makers to deploy and it offers much of the same functionality users have come to expect from Windows or OS X.

It looks like we’re in for what could be a long and protracted legal battle over the right to use the word “netbook” for commerce purposes. Because it doesn’t look like either Intel or Psion are going to back down. In 2008, Intel, along with an enormous group of computer makers, retailers, journalists, bloggers, and consumers starting using the word to describe low cost ultraportable computers like the Asus Eee PC.

I get asked all the time why netbooks are suddenly so popular. My usual response is this: Once upon a time if you wanted a light weight, ultraportable laptop, you had to pay a premium price and you’d still wind up with a machine that wasn’t as powerful as a cheaper full sized laptop. Now, instead of paying $1500, you can pay $400 and get a machine that’s likely smaller and lighter than anything you would have found a few years ago.

Most netbooks today are nothing but tiny computers. They have similar displays, keyboards, and components including CPUs, RAM, and hard drives or solid state storage. And most netbooks powered by Intel or VIA chips are capable of running Windows, Linux, or in some cases OS X.But a growing number of netbook makers are considering ARM-based processors, which use less power.