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HTC reportedly finishing S3 Graphics acquisition to bolster patent portfolio

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HTC has reportedly decided to move ahead with the acquisition of S3 Graphics — and its patent portfolio — despite S3's patent infringement claims against Apple having been thrown out in November of last year.

Gallery Photo: HTC One S review gallery
Gallery Photo: HTC One S review gallery

Last November HTC stated that it would be taking time to "reevaluate" its decision to purchase S3 Graphics after an unfavorable ruling from the US International Trade Commission, but it appears HTC will be moving forward with its initial plans after all. Focus Taiwan reports that HTC general counsel Grace Lei said that the phone manufacturer had decided to complete the acquisition after completing a "cautious assessment" of S3 and its patent portfolio. You may remember that HTC had initially announced its plans to pick up the smaller company — at a cost of $300 million — in July of last year, just days after an ITC judge ruled that Apple had infringed upon two of S3's patents in Mac OS X.

It was a move that HTC all but admitted was designed to give it better legal leverage against Cupertino in the multiple patent battles the companies are engaged in. Unfortunately for HTC, in November of the same year a different ITC judge threw out the case altogether, leaving the value of S3's patent portfolio in question. Of course, with Apple driving hard to have HTC products pulled from US store shelves, and Google's attempts to hand off its own patents to the company as a defensive measure failing to pay off, HTC may need all the help it can get.