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.