Las Vegas –
announced here Monday that it has extended by two years its brand licensing
agreement with Funai for Philips televisions and video products in North
America through Dec. 31, 2015.
Under the original agreement, which was made in September 2008,
Funai licensed the rights to make and market Philips branded TVs and video
products in the United States and Canada through 2013. The deal was expanded in
2009 to cover North America, including Mexico, and 12 northern Latin American
countries.
“Philips is pleased with the progress Funai has made in our
relationship and we decided to extend the agreement to a four-year window from
the two-year window we had remaining,” said Andy Mintz, Philips’ senior VP and
head of global brand licensing.
The agreement covers televisions, DVD players, Blu-ray Disc
players and home theater systems.
The agreement also extends to the Philips branded hospitality
businesses that Funai picked up just over a year ago.
Last year Royal Philips NV announced a decision to offer similar
rights to Asia-based TPV for most of the rest of the world. Under that
five-year agreement, TPV will take a 70 percent stake in a new joint venture
company, with Philips holding the remaining 30 percent.
Under the existing agreement with Funai, Philips will continue to
provide product design input for Philips branded products marketed by its
licensees, Mintz said.
He added, Philips requires certain design consistencies in all
Philips products, regardless of where they are produced and marketed.
In addition, products must conform to certain performance levels
in order for them to be marketed under the Philips brand, said Todd Richardson,
sales and marketing senior VP for P&F USA, the Funai-owned company
coordinating sales and marketing of Philips TV and video products in North
America.
