May 20 (Bloomberg) -- Intel Corp., the world's largest computer-chip maker, was sued by a Canadian company that seeks $500 million and claims the Pentium chips infringe a patent.

Closely held All Computers Inc. owns a patent issued in 1996 for circuitry used to replace slower speed microprocessors with faster devices in computers. All Computers claims it pioneered the technology that helped companies make faster personal computers.

All Computers was founded by Canadian Mers Kutt, who helped developed personal computers in the 1970s. The Toronto-based company hasn't made any products in about 10 years. ``The business of the business right now is to enforce this patent,'' said All Computers lawyer Edward O'Connor.

``We have not seen the complaint, therefore any comment at this point would be inappropriate,'' said Chuck Mulloy, a spokesman for Santa Clara, California-based Intel.

The lawsuit was filed today in federal court in Alexandria, Virginia, which is known as the ``Rocket Docket,'' because cases proceed quickly there, O'Connor said. The $500 million figure, he said, is an estimate because ``virtually all of the Pentiums sold infringe this patent.''

The case is: All Computers Inc. v. Intel Corp., 04CV586, U.S District Court, Eastern District of Virginia.

Last Updated: May 20, 2004 10:22 EDT