All Computers, based in Toronto, claims the PC chip giant infringed a patent it owns covering the management of clock frequency in systems with high speed microprocessors, and is demanding at least $500m in damages.

But the effects could be felt well beyond Intel, as the technology at issue is arguably ubiquitous across the modern computing industry, and other chip makers, PC vendors and even users, could all be viewed as potential infringers.

US patent number 5,506,981, owned by All Computers, describes an accelerator board for use in replacing the microprocessor of a slow speed system board with a microprocessor operating at a higher clock speed.

Edward O’Connor, a partner at law firm Levin O’Connor and lead counsel for All Computers, said that in early PCs the processor speed was either the same as or a simple multiple of the clock speed of the motherboard, for example a 10MHz motherboard, and a 20Mhz CPU.

However, he continued, All Computers’ technology allowed microprocessors to operate at a fractional multiple of the motherboard clock speed, allowing, for example, a 66MHz processor to be used with a 20MHz motherboard.

This kind of technology became essential with the Pentium II generation of Intel processors, O’Connor said, which kicked off a massive and rapid ramp in processor clock speed that is only now abating.

While Intel may not have built the necessary circuitry into its chips itself, argued O’Connor, its dominant role in the PC industry meant that it had induced or contributed to others’ infringement of the patent.

Following All Computers’ argument, it would appear most computing systems with high speed processors could fall foul of the patent.

O’Connor confirmed that the company was investigating other potential infringers, including microprocessor vendors, motherboard makers, chipset designers and PC manufacturers.

However, Intel is the only company that has so far been approached by All Computers. According to yesterday’s filing, Intel had ignored the offer of a license by All Computers.

In its filing, All Computers is demanding compensatory damages of $500m, as well as for the case to be adjudged an exceptional case making Intel liable for attorneys fees and treble damages. All Computers is also asking for Intel to be prevented from further infringing the patent, and that all infringing products be recalled or destroyed.

An Intel spokesman said yesterday that on a preliminary analysis, the suit appeared to be without merit, and the company would conduct a vigorous defense.