Following the US International Trade Commission’s (ITC’s) decision this week that Apple isn’t violating image processing patents held by S3 Graphics, thereby concluding its investigation on this matter, HTC is reconsidering its acquisition of the chip maker.  

According to paidContent.org, HTC will be reevaluating its agreement with Taiwanese chip design firm VIA Technologies, which has the company purchasing all of VIA Technologies’ shares in graphics chip maker S3 Graphics.

The agreement, which was announced in July, sees the Taiwanese tablet and smartphone maker agreeing to pay $300 million for these shares. VIA Technology would receive $147 million, whilst the remaining $153 million would go to private investment company WTI. The latter assisted VIA in funding S3 Graphics’ operations and research and development initiatives.  

“HTC is disappointed at the outcome of the recent ITC ruling that stated Apple did not infringe S3 Graphics’ patents. S3 Graphics will continue to appeal. HTC has made significant effort in preparing for these complicated legal proceedings, including a complete legal investigation and comprehensive report on patent and price evaluations,” HTC said in a statement supplied to paidContent.

“HTC had decided to acquire S3 Graphics based on the strong belief that evidences of patent infringement from Apple were clear and ITC ruled in its initial determination that Apple had infringed two patents from S3. In light of recent development, HTC will work closely in good faith with VIA Technologies and WTI Investment International to conduct [a] holistic re-evaluation of the S3 Graphics acquisition.”

 

In other patent related news Apple has been allowed to continue selling its iPhone 4S in Australia until March next year, at which time a patent infringement case by Samsung against Apple will be heard in an Australian Federal Court.