Philips has today announced that it has entered into a new license agreement with TPV Technology, which will allow the Hong Kong based company to produce and market Philips branded audio and home electronic products.

The agreement follows from this month’s bankruptcy application from world famous guitar makers Gibson, who had previously owned the license for Philips branded audio goods.

As a result of their bankruptcy, Gibson declared it would be winding down its recently created Gibson Innovations division, which had a marketing office in Eindhoven, to return solely to its core musical instrument business.

Since then, Philips have been searching for a new license holder to continue production and marketing of Philips branded headphones and speakers.

Steve Klink of Philips Group described the need to for Philips to act quickly. “All of these developments were triggered by Gibson Brands who decided to pull the plug on Gibson Innovations. We had to react to that and try to find a solution to ensure continuity of the products in a relatively short time frame”.

“If this situation were to have become prolonged, then we would have had a longer period of inactivity. This would risk customers and the future of the brand. This is a good step given the circumstances”.

Klink added that the continuation of Gibson Innovations’ Netherlands-based operations and Eindhoven office is an open matter for TPV, and up to whether it suits their business plan for Philips branded audio goods.