HTC May Ditch S3 Graphics After Losing Patent Battle with Apple

The patent wars between major technology giants like Apple, Google, Microsoft, Samsung, HTC and others have been going on for months now. If you remember, we had earlier posted about HTC’s acquisition of S3 Graphics from VIA, through which it was planning to force Apple to not sue it for patent infringement related to Android devices.

S3 Graphics was then involved in a patent lawsuit against Apple, which could have led to a ban of the sale of Macs in the U.S. HTC was hoping that its acquisition of S3 would make its patent troubles go away, but that didn’t happen. As it turns out, Apple won that fight, which has made HTC’s S3 acquisition pointless.

Now, according to a report by Bloomberg, HTC is reevaluating its purchase of S3 Graphics, which may end up with HTC dropping the acquisition altogether, which hasn’t yet been consummated.

HTC Corp. will reevaluate its planned purchase of S3 Graphics Co. after the target company lost a U.S. International Trade Commission ruling it brought against Apple Inc. over patent infringement, the Taoyuan, Taiwan-based company said in a statement today.

Presumably it will have to cough up some break-up fee if it ditches VIA, but we don’t have any specific numbers as yet.

Stay tuned, we will keep you updated as more details come out.

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