UK iPod chipmaker Wolfson Microelectronics has been hit with legal action as the company prepares to float on London's stock exchange next week.
The Scotsman reports that it has been accused of patent infringement by US company Cirrus Logic.
The latter firm has filed papers in LA's federal court which allege that: "A number of Wolfson products that incorporate technology for converting digital data to analogue signals infringe Cirrus patents," the report states.
Cirrus is filing for damages and is asking the US courts to bar Wolfson from making, selling or importing the products into the US.
In a statement, Wolfson says: "At no stage has Cirrus had any contact with Wolfson directly on this subject and the board is surprised by this unexpected disclosure."
It is currently assessing Cirrus Logic's claims.