HTC said on Monday that it has moved forward with its acquisition of graphic chipset maker S3 Graphics. The driving force behind this decision is S3 Graphics’s large patent portfolio of around 270 patents. HTC’s general counsel Grace Lei citied a preliminary ruling in favor of S3 by the U.S. International Trade Commission (ITC) over Apple back in July 2011 as affirmation of S3’s potential value.
“We think S3’s patent portfolio is valid and strong, and we have decided to complete the purchase of S3 after cautious assessment,” Lei said at an annual shareholders’ general meeting. After the ITC’s preliminary decision, HTC announced its plans to acquire S3 Graphics for $300 million. However, the deal was placed on hold after the ITC overturned its initial ruling in which it said Apple did not infringe on S3’s patents.
HTC’s ongoing patent feud with Apple started back in 2010 and it’s likely that this purchase is to prevent further friction in the company’s future. In addition to gaining access to a plethora of patents, HTC will also be gaining a chip maker, which could definitely come in handy somewhere down the road.
[via: Focus Taiwan]