VIA Technologies today announced that it and its partner investment firm WTI are selling off S3 Graphics to smartphone manufacturer HTC.
The acquisition is notable because S3 Graphics recently won a partial victory over Apple in an initial judgment on a patent dispute being reviewed by the U.S. International Trade Commission. HTC's purchase of S3 will turn those patents over to the smartphone company and be a significant bargaining chip should the initial determination that Apple has violated two of the patents hold up.
Apple and HTC have been locked in a legal battle for well over a year, beginning with Apple's March 2010 lawsuit accusing HTC of infringing 20 Apple patents with its Android-powered handsets. HTC filed a countersuit several months later, but no resolution has yet been reached.Owning S3 Graphics may boost HTC in its legal battle against Apple, which last year sued the Taoyuan, Taiwan-based company for patent infringements. S3 Graphics last week won a ruling against the maker of iPhones and iPads regarding two patents for compression technology.
"Buying a patent portfolio will be very useful to us," Yung said, declining to comment on specific lawsuits.
Article Link: HTC Gains Patent Foothold Against Apple With Purchase of S3 Graphics