CDRLabs.com

Posted: **Tue Feb 06, 2007 7:51 am**

http://www.newscenter.philips.com/About/News/article-15717.html

Tuesday, February 06, 2007

Amsterdam, The Netherlands– Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced the sale of its Philips Optical Media & Technology (OM&T) activities to Moser Baer India Ltd. for an undisclosed amount. OM&T develops DVD and Blu-Ray related technology for the optical disk industry.

The sale of OM&T is part of Philips’ program to divest certain components businesses, which have to that end been placed in its Corporate Investments portfolio. This transaction represents another step Philips is taking to focus on its Healthcare, Lifestyle and Technology activities supported by the strength of the company’s brand.

OM&T employs approximately 50 people in Eindhoven and had turnover in 2006 of approximately EUR 10 million. The transfer of ownership to Moser Baer is effectuated retroactively from January 1, 2007.

Posted: **Tue Feb 06, 2007 1:30 pm**

MBI has more info on their website:

http://www.moserbaer.com/newsroom_pressreleases.asp

Moser Baer and global giant Philips today announced that they have entered into a definitive agreement under which Moser Baer will acquire OM&T B.V., a highly specialized technology company for optical R&D, which currently is a 100% subsidiary of Philips.

"This acquisition is a major strategic milestone for Moser Baer as we implement our strategy to be at the forefront of technology in both the optical and solar photovoltaic (PV) segments." comments Ratul Puri, Executive Director, Moser Baer India.

This acquisition will complement the existing cutting edge technology research being done in Moser Baer’s R&D center in India and help the global number two player in the optical media market to further consolidate its leadership position. According to the agreement, all IP created by OM&T will be transferred to Moser Baer. The Joint venture will also focus on development of photovoltaic technologies to support Moser Baer’s PV business.

According to Dr. Nic Kramer, Senior Vice-President, Corporate Investments, Philips International B.V., "This is synergistic move, and I am sure that Moser Baer’s high technology manufacturing competencies along with OM&T’s R&D capabilities will ensure that we see innovative products in the immediate future."

While OM&T has been instrumental for developing new optical media solutions and technologies creating new markets via global standardization, its pioneering work in Blu-ray and its status of being the only company outside Japan which is shipping Bluray discs will jumpstart Moser Baer’s objective of being amongst the first few global manufacturers of the Blu-ray disc.

Moser Baer’s proprietary patented L2H (low to high) technology, along with OM&T competencies in the H2L (high to low) technology will ensure that Moser Baer leads in Blu-ray disc technology and manufacture. Having already established a first mover advantage in HD DVD-R format, the company will now extend its technology leadership position in the Blu-ray media as well as other new formats like Holographic Storage.

According to Girish Baluja, COO, Blank Optical Media, Moser Baer India, "OM&T brings to MBI not only its state-of-the-art Blu-ray disc testing and manufacturing capabilities, world class mastering and stamper making expertise, test and professional discs opportunities… but also a pool of highly qualified scientists and engineers. This talented pool will augment Moser Baer’s capabilities in the areas of optical media, PV and beyond."

According to Dr. Jan van den Brink, GM OM&T, "I am excited about the opportunity to join Moser Baer. I believe that the combined R&D efforts will ensure that we can become a hub of global optical media and photovoltaic research in the world."

OM&T will also help Moser Baer’s entry in the Test Disc market, in which OM&T is a leading player. Test Discs enable disk manufacturers to test and calibrate their drives. With the agreement, Moser Baer will also be able to leverage OM&T’s best in class mastering and stamper making capabilities. Moser Baer and OM&T will complement each other well in terms of key R&D initiative and help Moser Baer in further establish the company’s leadership position.

OM&T also possesses world class capabilities in thin film, wet chemical processing, optics & concentration and testing procedures which will enable Moser Baer to take a significant leap forward in R&D efforts in multiple PV technology forays

I'm not sure if I like the fact that MBI will own all of OM&T's intellectual property. That gives them significant control over the DVD and Blu-ray formats.

Posted: **Tue Feb 06, 2007 2:10 pm**

Is this good or bad for the users? I´m not biggest fan of MBIL

Posted: **Tue Feb 06, 2007 2:19 pm**

I think this is a VERY significant move for the industry. Unless I'm mistaken, MBIL now controls all of Philips optical storage patents, which have got to be worth a fortune.

Any word on how much this is costing MBIL? (edit - if I had read the original article I would have known - the amount is "undisclosed"

)

Posted: **Tue Feb 06, 2007 3:46 pm**

[buck] wrote:I think this is a VERY significant move for the industry. Unless I'm mistaken, MBIL now controls all of Philips optical storage patents, which have got to be worth a fortune.

Any word on how much this is costing MBIL? (edit - if I had read the original article I would have known - the amount is "undisclosed" )

I don't think that's what this means... I don't think Philips would sell their PATENTS for anything.

Well, unless they expect all CD/DVD/BluRay production to cease very soon, and that they could get significantly more money from it this way. But frankly, I *REALLY* don't see that happening.

Posted: **Tue Feb 06, 2007 3:56 pm**

dolphinius_rex wrote:
[buck] wrote:I think this is a VERY significant move for the industry. Unless I'm mistaken, MBIL now controls all of Philips optical storage patents, which have got to be worth a fortune.

Any word on how much this is costing MBIL? (edit - if I had read the original article I would have known - the amount is "undisclosed" )

I don't think that's what this means... I don't think Philips would sell their PATENTS for anything.

Well, unless they expect all CD/DVD/BluRay production to cease very soon, and that they could get significantly more money from it this way. But frankly, I *REALLY* don't see that happening.

I was basing that assumption on this:

According to the agreement, all IP created by OM&T will be transferred to Moser Baer.

I guess it depends on which patents belong to OM&T... on second thought it does seem doubtful that Philips would sell their key CD/DVD/Blu-ray patents.

Posted: **Wed Feb 07, 2007 9:18 am**

I can say safely that based on the information of the Dutch press that the important pattents are still in Philips hands.
So it is Philips cashing in on stuff like veeza/dvd royalties and not MBIL.

However MBIL might be no longer needing to pay royalties on technologies made by Philips OM&T. I wonder how much this will have effect on the situation about the dvd royalties that is currently running for Delhi court.

CDRLabs.com

Philips sells OM&T activities to Moser Baer of India

Philips sells OM&T activities to Moser Baer of India