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Philips Licenses Brand To GiiNii For Digital Photo Frames

Stamford, Conn.
Philips Consumer Lifestyles said it
recently entered a brand-licensing agreement with digital picture frame
resource GiiNii International to use the Philips trademark for digital photo
frames and digital cameras.

Under the agreement, GiiNii
will assume responsibility for the manufacturing, service, and sales and
marketing support of Philips-brand digital still cameras and digital photo frames
in the United States and Canada,
according to a company spokesperson.

The deal does not include any other Philips-controlled brands, a
spokesperson said.

The deal structure, which was completed Aug. 1, was described as
being very similar to the agreement Philips reached with Funai for TVs and
video components in the United States
and Canada.

Philips retains full visibility over all of GiiNii products and
programs under the Philips name, and will give GiiNii the option of using digital
imaging products developed by Philips engineers for other parts of the world.

In the event that GiiNii opts to market products of its own
design under the Philips brand, Philips will have final sign-off rights, the
spokesperson said.

Through the deal, GiiNii retains the right to bring digital
camera products back to the Philips line in the U.S.
and Canada. The company
dropped the category several years ago, among the last camera products was a USB
drive with built-in photo-taking functionality.

In comparing the deals, Philips said it has enjoyed its
arrangement with Funai so far, indicating that that deal “has proven to be
successful out of the gate.”

The arrangement with GiiNii International will enable the Dutch
consumer electronics manufacturer to “continue to invest in high quality
products in categories where the Philips brand has strong equity with consumers,”
Philips said.

Over the past several months, and prior to reaching the
agreement, Philips said it had been “exploring opportunities that would allow
Philips to realize its full potential” in the highly competitive category.