TPV and Royal Philips sign TV licensing deal

Dutch electronics corporation Royal Philips Electronics (RPE) and Hong Kong-based TPV Technology, a manufacturer of desktop monitors and LCD TVs, have 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 RPE’s 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 the intended agreement.