HTC: We’ll re-evaluate S3 Graphics acquisition in light of the unfavorable ITC ruling

HTC came up with an official statement about the S3 Graphics acquisition, after the ITC ruling the other day. The Taiwanese were hoping to use S3 Graphics patent portfolio to gain leverage in their ongoing patent battle with Apple, but the US ITC cleared the iPhone manufacturer of infringing any of the S3 Graphics-owned patents.

So with the main reason for the deal gone, HTC is reconsidering going through with it. The company said that it was disappointed at the outcome of the ruling and while S3 Graphics will appeal against it, the acquisition is now hanging in the balance.

Here goes the full statement.

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 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 holistic re-evaluation of the S3 Graphics acquisition.

Now, we don’t know the exact details of the contracts HTC has signed, but if it is found that they cannot give up on the deal, this might turn out one of their costliest mistakes ever.