Philips is a major mobile phone brand in the world.
On October 12, 2006, Philips announced that it had signed a letter of intent to transfer its existing mobile phone business to China Electronics Corporation (CEC). CEC will be responsible for Philips' mobile phone business. Under the terms of the letter of intent, CEC will obtain a global Philips brand license within the next five years for the marketing and sales of mobile phones.
China Electronics Information Industry Corporation is mainly engaged in the research and development, design, production, application, supporting, sales promotion and other information technologies and products such as integrated circuits, computer software and hardware and system integration, communication network products, and digital home appliances. Technical services. Its sales in 2005 were RMB 53.38 billion.
The company has had in-depth cooperation with Philips in the mobile phone business before. In 1996, the two parties merged with Shenzhen Sangfei Consumer Communications Co., Ltd. The company currently has a registered capital of US$33 million and is "PHILIPS" The only production base for branded mobile phones in the world.
On February 13, 2007, Philips Electronics officially announced that it had signed a final agreement with China Electronics Corporation (CEC), and Philips would transfer its current mobile phone business to CEC. CEC will take over Philips' mobile phone business, which had sales of approximately 320 million euros in 2006 and has approximately 240 employees, mainly in the Asia-Pacific and Eastern Europe regions.
According to the terms of the agreement, Philips’ ultra-long-standby sub-brand Xenium will be transferred to CEC. CEC will obtain the exclusive authorization of the Philips brand in the next five years and can sell Philips brand mobile phones in the global market. CEC will also obtain the transfer and licensing of patents related to Philips mobile phones. In addition, Philips transferred the marketing system of the country where its mobile phone business mainly operates and its 25% stake in Shenzhen Sangfei Consumer Communications Co., Ltd. to CEC.
On the evening of August 9, 2007, the Hong Kong listed company of China Electronics Information Industry Group issued an announcement stating that it had reached an agreement with Philips. Its Shenzhen Sangfei mobile phone has obtained the Philips trademark brand authorization and can produce and sell "Philips" mobile phones. brand" mobile phone, the initial one-year minimum trademark license fee is 7 million euros. Previously, on February 12 this year, Philips announced that it had signed a final agreement with China Electronics to transfer the company's remaining mobile phone business to China Electronics.
On the evening of August 9, China Electronics Group announced that it had signed a trademark license agreement with Philips. Philips agreed to grant the use of certain Philips trademarks to mobile phones produced by Shenzhen Sangfei Company, a subsidiary of China Electronics. Sangfei also Signed an intellectual property agreement with Philips, and Philips transferred to Sangfei the patents, software and other intellectual property rights involved in the production and sales of Philips brand mobile phones. The trademark and intellectual property transfer agreement will terminate on March 31, 2012.
According to the announcement, the trademark license fee paid by Sangfei will decrease year by year. The more mobile phones bearing the Philips trademark are sold, the less the trademark license fee will be for each mobile phone. The trademark license fee paid is 3 million euros from August 3, 2007 to March 2008, and the trademark license fee is 7 million euros from March 31, 2008 to March 31, 2009. There is no minimum trademark license in the remaining years. fee.
In addition, in terms of intellectual property rights, Sangfei paid a symbolic $1 to Philips.