Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA) today announced that it has signed a binding letter of intent with TPV Technology Limited (stock code: 903) pursuant to which Philips will grant TPV an exclusive license agreement to use the Philips brand for sales, marketing and distribution of audio and video products and accessories worldwide.
The brand license agreement is to commence on June 1, 2018 for a period until December 31, 2023, and may be renewed automatically, subject to the terms of the agreement. The financial details were not disclosed.
Until recently, Gibson Innovations was responsible for sales, marketing and distribution of Philips-branded audio and video products and accessories worldwide. Since its parent company Gibson Brands filed for Chapter 11 in the US on May 1, 2018, and its affiliates subsequently took similar steps in other countries, Philips explored several scenarios regarding the continuity of Philips-branded audio and video products and accessories.
TPV has been a trusted partner of Philips for more than a decade. The brand license agreement for audio and video products and accessories will complement TPV’s existing brand license agreements with Philips, for example for TVs and monitors.