A Toronto based PC components manufacturer, All Computers, has filed a lawsuit against the world's largest chip maker, Intel Corp.
The company claims Intel has violated their patent related to the way high-speed chips operate.
All Computers is demanding compensatory damages and the ban on the shipping of microprocessors that contain the company's patented circuitry, reported All Computers lawyer, Edward O'Connor.
The suit is a result of earlier disputes that involve Intel and the consumers. San Diego based semiconductor, Patriot Scientific, sent letters to 150 companies, warning them of the patent that they might be infringing on the chips that operate at more than 120 MHz.
Patriot also filed a lawsuit against five well-known companies including Fujitsu, Matsushita Electric, NEC, Sony, and Toshiba. Patriot claimed these companies sold computers based on microprocessors operating at speeds above 120 MHz.
The company said, $150 billion worth of microprocessors use its patented technology.
Intel has settled other patents with Integraph for $675 million. Integraph claimed Intel violated patents from the company's Clipper chip.
All Computers was awarded the patent in 1996 and it describes the exact technology that Intel is using in their microprocessors, reported O'Connor, lawyer for All Computers.
The lawyer also said, this patent could apply to other chips and the technology that is being used in them, which leads analysts to believe that All Computers may go through with other lawsuits after this one is settled.
All Computers offered a license to Intel but the chipmaker never replied, said O'Connor.
Intel did not comment on the report.