Business Context and Reporting Period
This Form 6-K filing by LG.Philips LCD Co., Ltd. (LG Display) covers the month of February 2008. The report discloses a material transaction involving the renewal of a Trademark License Agreement with its largest shareholder, LG Corp., an affiliated company.
Key Financial Metrics
The filing does not provide specific financial statements, revenue figures, profit margins, cash flow data, debt levels, or liquidity metrics. The only financial variable disclosed is the formula for calculating the license fee, which is based on consolidated Gross Revenue and Advertising Expense.
Material Changes and Transaction Details
The primary material event is the renewal of the Trademark License Agreement, which expired in July 2004. The Board of Directors approved the renewal on February 4, 2008, with full attendance of outside directors and audit committee members. The new agreement term is from January 1, 2008, to December 31, 2010.
- License Fee Structure:
- January 1, 2008 – June 30, 2008: 0.1% of (Gross Revenue minus Advertising Expense).
- July 1, 2008 – December 31, 2010: 0.2% of (Gross Revenue minus Advertising Expense).
- Rationale: The fee structure accounts for a preparation period for a change of trade name.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on market outlook, or discussion of general business risks. The document notes that the agreement is subject to re-negotiation after the December 31, 2010, expiration date.
Investor Verification Checklist
- Verify the consolidated Gross Revenue and Advertising Expense figures to calculate the actual license fee payable under the new terms.
- Confirm the status of the "change of trade name" referenced in the fee structure rationale.
- Review the relationship and other potential transactions between LG.Philips LCD Co., Ltd. and LG Corp. to assess related-party exposure.
- Monitor future filings for the re-negotiation of the trademark agreement post-2010.