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HTC to complete S3 acquisition for 270-patent portfolio

updated 04:26 pm EDT, Tue June 12, 2012

Decision follows assessment of S3 graphics holdings

HTC has confirmed it wishes to complete the purchase of S3 Graphics, in an effort to boost its patent portfolio. After mulling the buyout last year, HTC has publicly confirmed that it sees the graphics chipset designer's 270-patent portfolio as an asset. Speaking at the annual shareholders' general meeting, HTC general counsel Grace Lei labeled the S3 portfolio as "valid and strong" following the "cautious assessment."

HTC last July bought VIA's $300 million stake in S3, inspired by the graphics company's win in ITC disputes against Apple on two patents. The rulings were later overturned in November, however, pushing HTC to reevaluate the buyout.

Aside from the patent catalog, the S3 purchase was also seen as a way for HTC to improve its graphics processing technology. Where Apple may have the ability to customize processors, HTC is believed to view S3 as key to achieve equivalent capabilities. Although S3's products are primarily geared for PC's, the company's graphics performance and power-efficiency heritage is considered potentially advantageous in the mobile realm.

Apple and HTC continue to wage patent-based war with each other, with disputes split between several cases. Five HTC-owned patents recently were dropped from a complaint, due to a documentation issue surrounding rights for the decade-old documents. [via Focus Taiwan]

by MacNN Staff



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