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.