According to the FOSS Patents Blog, earlier today the US International Trade Commission entirely dismissed the first S3 Graphics complaint against Apple. Interestingly, the official notice (PDF link) has no explanation why the Administrative Law Judge was overruled. There is still one pending complaint by S3 Graphics against Apple which has not been ruled on.
Part of what makes this an issue is that HTC is in the process of buying S3 Graphics, and a couple of strikes against Apple patent-wise would have just sweetened that deal. At least we don't have to wait long for more progress on the ITC front, as a date of December 6th has been set for a ruling on Apple's first complaint against S3 Graphics.
And don't forget there's still a bit of tussling between Apple and HTC going on as well, with a patent infringement throwdown still not yet decided between them, either. Whew!
It's all a bit confusing at first glance, so get comfy, get ready to take some notes, and head over to the FOSS Patents Blog for more information and links to other coverage that will help you make sense of all the legal wrangling.