Boston, MA 10/03/2014 (wallstreetpr) – Koninklijke Philips NV (ADR)(NYSE:PHG) problems of compensation claims don’t seem to end. At a time when it has just lost the $467 million patent judgment to Masimo Corporation (NASDAQ:MASI), it is faced with a fresh compensation claim of $394 million from Japan’s Funai Electric Co. The compensation claim matter comes amidst the dispute that the two electronics companies are having over a collapsed deal.
The collapsed deal
The collapsed deal is related with the audio and video division of Philips. Philips had made a sale deal of its division with Funai in January 2013. The deal was valued at €150 million which failed to materialize in the same year. The collapsed deal resulted in a blame game between the two companies. They accused each other of breaching the contract. Philips made a demand of €175 million as a compensation for breach of contract.
The problems
Koninklijke Philips NV (ADR)(NYSE:PHG) stated that Funai’s compensation claim of $394 million has “no merit”. However, the statement or the perception of Philips cannot change the fact that it is the second claim compensation against it within two days. It will have a negative impact on Philips. In the first compensation claim, a jury of The Federal Court, Delaware, said that Philips is bound to pay $467 million of compensation claims to Masimo. The latter company filed an infringement lawsuit against Philip in 2009. The case was related with the patent of a technology that was installed in a fingertip device used for measuring blood oxygen.
The future ahead
Philips had made it clear that it will appeal the patent ruling. Frans van Houten, the CEO of Philips, said that Philips is disappointed with the verdict and even surprised with the magnitude of compensation claim. The news is coming at a time when Philips announced its plans to split itself into companies.
