HTC goes ahead with its plan to buy S3 Graphics

June 12, 2012
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Following the less than favorable ruling from International Trade Commission regarding HTC’s use of Google-given patents in its lengthy legal battle with Apple, the Taiwanese phone maker has revealed that it will continue with its plan to acquire S3 Graphics — in a bid to build its patent arsenal.

During the company’s annual shareholders’ general meeting, HTC general counsel Grace Lei said that “S3’s patent for portfolio is valid and strong, and we have decided to complete the purchase of S3 after a cautious statement.”

Once the $300 million purchase is finalized, HTC will gain access to S3’s trove of 270 patents, which have been licensed to various companies, such as Sony, Nintendo and Microsoft. Whether or not they will be enough to fend off the relentless attack that Apple has launched against HTC is a different matter. After all, back in November of last year ITC gave Apple the green light on an accusation of HTC infringing two of S3’s texture compression technology patents – a ruling that saw HTC placing the deal temporarily on hold.

HTC is facing a perilous journey ahead, what with Apple’s dead-set determination to kill its business in the US. Coupled with the intensifying competition in the smartphone market, HTC has been forced to revise its Q2 sales projection downward by 13%.  Here’s hoping that HTC will keep calm and carry on.

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