Philips moves audio/video license to TV licensee

Philips has extended its license with TPV, licensee for TV and monitors.. The additional category is audio and video, as reported here.

The license started on June 1, 2018 and runs until December 31, 2023, with renewal options.

Previously, the license has been with Gibson Innovation. The parent, Gibson Brands, filed for Chapter 11. Thus, Philips explored other options.

Philips sells and licenses Multimedia

[:en]After selling and licensing its TV and computer screen business, Philips now sells and licenses the audio unit.

Buyer and licensee is the US company Gibson Brands, known for guitars.

The purchase price is US$135 million. The license runs for seven years.

In 2017 the video business will be licensed to Gibson as well.[:]

Philips switching more products to license

In 2008, Philips switched from manufacturing and selling TVs in North America to a brand licensing model. We wrote about it here.

Continuing this strategy, Philips now announced a brand license for its digital photo camera and digital picture frame business in the USA and Canada.

The licensee will have access to Philips’ brand, technology and engineering. Production, sales and marketing will be the responsibility of the licensee.
Of course, Philips maintains control by executing its right of final approval.

This is the business model of the future. We call it:

“Doing only, what one does best.”

This business approach was chosen by P&G a while ago, it is called connect and develop. It led to increased profitability even during the current recession.

Funai and Philips enter US TV Brand Licensing Deal

Funai Electric Co. and Royal Philips Electronics will sign a licensing pact allowing the Japanese firm to use Philips’ television brand names in North America.

Under the pact, set to take effect Sept. 1, Funai will pay licensing fees to Philips in exchange for the exclusive right to use the Dutch firm’s Philips and Magnavox brand names. The pact can be renewed every five years.

Currently, Funai sells liquid crystal display TV sets with screen sizes of 15-37 inches under three brands in the United States and Canada.

Following the licensing deal, Funai expects its TV sales in North America to reach 3.3 million units in 2008, double the level in the previous year.

Extracting gold from patents can bolster the bottom line

The International Herald Tribune writes on Sunday:

“The Dutch brand Philips is found on millions of televisions, stereos and other electronic products in living rooms around the world. Almost as ubiquitous are the products of the French manufacturer Thomson, which is known for its televisions, professional video equipment and TV set-top boxes.

Yet last year, these consumer electronics makers did not profit from making consumer electronics. Instead, Thomson got 75 % of its operating earnings – 325 million of the total of 434 million, or $390 million of $522 million – by licensing its technology to other companies. Philips would have lost money on its consumer electronics business last year if not for 478 million in licensing income.

Squeezed by low-cost Asian manufacturers, niche competitors like Apple Computer and ambitious interlopers like Samsung Electronics, the industry’s historic leaders are increasingly dependent on selling ideas rather than products, and at profit margins that are far wider than in the cutthroat world of consumer gadgetry.

“Intellectual property is playing an increasingly important role for our group,” Rudy Provoost, head of Philips Consumer Electronics, said in an interview. “It’s just a fact of life in our business now that you have to cultivate and protect IP.”

The question is whether the traditional approach of developing, owning and mining patents for revenue has a future in a world where copies and knockoffs are increasingly simple to make, license fees easy to avoid and a certain part of the next generation more comfortable with “sharing” than with owning.

To be sure, the technology industry is still dominated by proprietary manufacturers like Sony, Philips and International Business Machines, which are more aggressive than ever in pursuing patents and patent infringement. This year, IBM is expected to file around 3,250 patents – the most of any company in the United States.”

How satisfied are you with the development of your IP portfolio?