It seems this is a hardware driver problem. It has been reported to the 
upstream kernel in these 2 bugs:
https://bugzilla.kernel.org/show_bug.cgi?id=115631
https://bugzilla.kernel.org/show_bug.cgi?id=120181
It does not look very good. Not much progress...

** Bug watch added: Linux Kernel Bug Tracker #115631
   http://bugzilla.kernel.org/show_bug.cgi?id=115631

** Bug watch added: Linux Kernel Bug Tracker #120181
   http://bugzilla.kernel.org/show_bug.cgi?id=120181

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https://bugs.launchpad.net/bugs/1563229

Title:
  Touchpad recognised as mouse FTE1000

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