Japan's Funai told to pay Philips $152 million compensation
THE HAGUE, Netherlands (AP) — Royal Philips says an international arbitration panel has ordered Japanese company Funai Electric Co. to pay the Dutch electronics firm 135 million euros ($152 million) compensation over a breach of contract.
Philips launched the arbitration proceedings in 2013 after terminating a $200 million deal to transfer to Funai its audio, video and media accessories unit and license the right to distribute the products with Philips branding for five years.
At the time, Philips said Funai, "refused to take the necessary steps to enable completion of the transaction."
The Dutch company said Tuesday that the money stemming from the ruling from the International Chamber of Commerce International Court of Arbitration will be reported in its second-quarter earnings.