Philips denies blocking export of Chinese DVD players

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BEIJING, Jan 19, 2005 (Xinhua via COMTEX) -- Royal Philips Electronics, the Dutch communications giant, has denied reports that it is seeking to block the export of Chinese DVD players as their manufacturers fail to pay Philips the royalty fees.

Ruud Peters, chief executive officer of Philips' Intellectual Property and Standards division, said Philips will share technologies with Chinese manufacturers to expand the market rather than suffocate the business, China Daily reported on January 19.

Media reports, first run in Taiwan, have been mounting over recent weeks that Philips asked customs agencies in the United States and Europe to ban imports of DVD players made by Chinese firms.

The shares of DVD makers on the Chinese mainland have dropped, previous reports have said.

Such reports are groundless, and "are misleading to the public and harming Philips' reputation on the Chinese mainland," the paper quoted Peters as saying.

According to Peters, DVD makers on the Chinese mainland produced 40 million units in 2003, accounting for 75 percent of the global market.

Last year, this figure reached 135 million, making up 90 percent of the 150 million global output, the paper said.

"The Chinese mainland's market share has been increasing, not decreasing," he said.

Philips outsourced 8 million units last year, compared with 3 million in 2003, to Chinese mainland OEM firms, the executive noted.

Philips last year teamed up with three leading Chinese universities to establish IP academies to help China train IP experts and judges which are urgently needed across the country.

Philips invested 1 million euros in each academy and has pledged financial support to expand the scope of IP academies in China, said Peters.