HTC admits S3 bought only for patent attack

HTC plans to "reevaluate" its buyout out S3 Graphics now that S3 has lost its ITC case against Apple, the smartphone designer said in a statement Wednesday. The brief response didn't give a likelihood but indirectly admitted that HTC had bought S3 solely on the basis of its interim patent win over Apple, which was just overturned this week. HTC had been prepared to spend $300 million.

S3 still has follow-up complaints at the ITC and the courts over patents. After losing its most important case, however, much of its leverage against Apple has gone, and doubts exist as to whether it will go forward on the second dispute. HTC and S3 have already said they were considering appealing the ITC ruling exonerating Apple.

Apple started the conflict when it sued HTC for allegedly violating iPhone-related patents. HTC has been using more generic claims for countersuits and has been borrowing from Google and Motorola to bolster its own small patent collection.

By Electronista Staff