China Electronics Corporation Group has issued an announcement saying that it has reached agreement with Philips and has obtained the authorization of using the latter's trademarks.
With the authorization, which will be valid until March 31, 2012, CEC's subsidiary Shenzhen Sangfei Mobile Phone is now able to produce and sell Philips branded mobile phones. The company needs to pay Philips EU$7 million each year for the trademark authorization during the initial period. In addition, it also must pay a symbolic US$1 to Philips as an intellectual property fee.
In February, 2007, Philips signed an agreement with CEC to transfer its remaining mobile phone service to the latter.