Amsterdam, the Netherlands – Royal Philips Electronics (NYSE: PHG, AEX:PHI) and TPV Technology (0903.HK) today signed a Letter of Intent to enter into a brand licensing agreement under which TPV will assume responsibility for the sourcing, distribution, marketing and sales of all Philips’ television activities in China (excluding Hong Kong, Taiwan and Macau).The five-year minimum agreement, which is subject to governmental approvals and expected to be signed in the third quarter of 2010 and implemented in the fourth quarter of 2010, stipulates that Philips will receive royalty payments in exchange for TPV’s right to exclusively use the Philips brand name for its TV offerings in China.
Other consumer businesses of Philips in China are not affected by this intended agreement.
This intended agreement with TPV is aimed at strengthening the presence of the Philips brand in the Chinese TV market and is in line with Philips’ global TV strategy, using different business models to optimize regional brand presence. Philips has other brand licensing agreements in place for its TV businesses in North America and Mexico with Funai Electric and in India with Videocon Group.
TPV is a leading display solution provider, specializing in design and production of a wide spectrum of desktop monitors and LCD TVs and a key industrial partner in the manufacturing of Philips LCD TVs. TPV will be licensed on condition of compliance with Philips requirements on brand use, product quality, product design and provision of consumer care. TPV will ensure that consumers of Philips-branded TVs can continue to count on the same premium quality, design, innovation and consumer care associated with the Philips brand.