HTC owned S3 Graphics has lost a patent infringement battle against Apple at the US International Trade Commission.
According to Bloomberg, the ITC determined that Apple had not violated patents belonging to S3 without giving any particular reason behind its decision.
HTC, which had purchased S3 for $300 million in order to gain an upper hand against Apple in separate patent infringement litigation, claimed that it was not satisfied with the judgement and plans to appeal the ruling at a US Appeals court.
"We are disappointed, but respect the ITC's decision. While the outcome is not what we hoped for, we will review the ruling once the commission provides it and will then consider all options, including appeal." HTC General Counsel Grace Lei said in a statement.
The loss suffered by S3 Graphics put a big question mark on HTC's decision to acquire the company. The smartphone maker had acquired S3 a week after it had filed a case against Apple with the ITC.
S3 Graphics was partly owned by HTC Chairwoman Cher Wang before it was acquired by HTC.
Experts claim that Apple has a lot of patents in its kitty and it is quite difficult to beat the iPhone maker in a head to head patent infringement battle.