Internet convergence player, SONICblue Friday says it won't seek to extend a marketing and distribution agreement with a well-known German TV maker.

The Santa Clara, Calif.-based company says after January 1, 2002, it will no longer work with Postfach, Kronach-based LOEWE as an extension of a prior three-year relationship between LOEWE and Sensory Science Corporation.

Sensory Science, which was acquired by SONICblue earlier this summer, had been marketing and distributing LOEWE branded digital direct-view televisions in the United States under a three-year agreement, which is set to expire at the end of this year.

"We continue to build equity in the SONICblue brands and it is our intent to focus our energies on products and relationships that further strengthen our brands," says SONICblue CEO and chairman Ken Potashner. "It is our belief that an extension of our marketing and distribution agreement with LOEWE would be inconsistent with the emphasis we are placing on building our brands. We see our parting of ways as a positive progression for both companies and a natural evolution of the relationship."

Under the terms of the agreement, SONICblue will support marketing, sales and service responsibilities during the transition period. But starting Jan. 1, 2002, LOEWE will market its own products through a wholly owned U.S. subsidiary and become responsible for all sales, marketing and service activities.

SONICblue says it is still focused on three principal business units, Rio (digital audio players), frontpath (Internet appliances for the home and business) and Access PDAs.

The company is also involved in the interactive television iTV space with the sales of DVR devices equipped with home networking capabilities under the ReplayTV brand, which it acquired about the same time as the Sensory Science deal.

But now that the LOEWE deal is set to dissipate, it remains to be seen if the company will spend as much time nurturing its iTV and ReplayTV line.

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