Can you still remember what it was like playing video games about 15-20 years ago?  Yeah, when pixelated characters were dominating your TV screen.  Today’s graphics have greatly evolved into characters that are so lifelike you’d have to sometimes ask if it’s a real person or CGI (i.e. PS3’s Batman: Arkham Asylum).  Graphics have also become a big deal for smartphones and tablets, such as Apple’s Retina display and Samsung’s Super AMOLED Plus, which provides users with better movie-watching or picture browsing rich experience.

And with HTC’s net income more than doubling (NT $17.5 billion) at the end of their second quarter, it only seemed appropriate that they acquired S3 Graphics from VIA Semiconductor for $300 million to continue their good streak by improving the graphics on their smartphones.  S3 Graphics is an image-compression technology provider that delivers jaw-dropping graphics for Nintendo and Sony PS game consoles.

But it looks like the S3 acquisition may have perks beyond smartphone technology. Owning S3 Graphics may boost HTC in its legal battle against Apple, which last year sued the Taoyuan, Taiwan-based company for patent infringements. S3 Graphics last week won a ruling against the maker of iPhones and iPads regarding two patents for compression technology.

“Buying a patent portfolio will be very useful to us,” HTC Chief Financial Officer Winston Yung said in Taipei, declining to comment on specific lawsuits.

As far as other device manufacturers go, Motorola announced today that the Dimetra IP 7.1 infrastructure and its MTM5400 TETRA mobile radio have successfully passed the TETRA Enhanced Data Services (TEDS) interoperability (IOP) testing conducted by ISCTI – Istituto Superiore delle Comunicazioni e delle Tecnologie dell´Informazione, the independent Italian government test house appointed by the TETRA Association.

And Sony Ericson looks to expand the reach of its high-end smartphones, cooperating with China Mobile Holdings Ltd to develop mobile phones that support China’s domestic fourth-generation telecommunications technology.