As patent infringement has quickly become one of the hottest topics in tech, HTC took a gamble by acquiring S3 Graphics and their portfolio of intellectual property back in July for a cost of $300 million. The Taiwanese company was hopeful that the move would pay off by providing not only protection against the allegations of Apple but also a means to directly attack the maker of the iPhone. The US International Trade Commission saw it a different way, handing down a ruling that Apple has not violated any of the patents brought in by the S3 Graphics buyout. HTC expressed disappointment in that decision and is exploring their option to appeal directly to a US patent court. Meanwhile, the smartphone maker’s stock value has dropped in light of the news, which some investors believe calls into question the initial purchase of the S3 Graphics, a company which has licensed its texture compression technology to the likes of Nintendo and Sony.
The ruling is among the first reached in about a dozen smartphone patent-related cases currently being mulled by the ITC. HTC and S3 Graphics still have three cases against Apple awaiting a decision.