WEBVTT - The Philips Story: Part One

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<v Speaker 1>With technology with tex Stuff from Stuff. Hey there, and

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<v Speaker 1>welcome to tex Stuff. I'm Jonathan Strickland, and today I'm

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<v Speaker 1>going to do in part one of an episode about

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<v Speaker 1>a company called Phillips or Royal Phillips has actually had

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<v Speaker 1>several names over its storied history, and I am going

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<v Speaker 1>to talk a little bit about what the company has done,

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<v Speaker 1>where it's from. And this is from a listeners suggestion.

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<v Speaker 1>Roger actually asked this. Roger wrote, I'm an avid Tech

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<v Speaker 1>Stuff podcast listener from the UK, especially enjoying the company histories.

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<v Speaker 1>I have two companies that I think would be quite

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<v Speaker 1>interesting to cover. The first is Royal Phillips. Phillips has

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<v Speaker 1>been an innovator since the eighteen hundreds, with everything from

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<v Speaker 1>light bulbs through to high tech medical scanning equipment, with

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<v Speaker 1>a few consumer items such as compact sets, video recorders,

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<v Speaker 1>laser disc and CD DVD technology thrown in for good measure.

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<v Speaker 1>It would be great to get the history, but I

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<v Speaker 1>really wanted to look at Phillips and talk about the

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<v Speaker 1>history of this company. It is interesting because I think

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<v Speaker 1>a lot of people when they think of electronics, they

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<v Speaker 1>tend to think of either American companies like General Electric

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<v Speaker 1>or Westinghouse, or they think about Japanese companies like Sony

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<v Speaker 1>and others are along those lines, but they tend to

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<v Speaker 1>forget that there were European companies that were instrumental in

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<v Speaker 1>the development of electronics, and in fact, Phillips is one

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<v Speaker 1>of those companies. So I thought I would tackle the

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<v Speaker 1>company history of Royal Phillips, better known as just Phillips

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<v Speaker 1>here in the USA. Although we'll get into how Phillips

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<v Speaker 1>is changing even as I speak, that will probably be

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<v Speaker 1>in part two. So Part one we're gonna focus on

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<v Speaker 1>the founding of the company and go through up to

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<v Speaker 1>about the beginning of World War Two, or at least

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<v Speaker 1>the Netherlands involvement in World War Two. Because the Phillips

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<v Speaker 1>is a company that originates from the Netherlands, the company

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<v Speaker 1>actually takes its name from a family. The patriarch of

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<v Speaker 1>that family was Benjamin Frederick David Phillips, who went by Frederick.

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<v Speaker 1>I'm gonna call him Freddie Baby, So Freddie Baby was

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<v Speaker 1>born in the Netherlands on December one, eighteen thirty. He

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<v Speaker 1>was the fourth son of a family that made its

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<v Speaker 1>money in the tobacco trade. His father, Lyon Phillips, was

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<v Speaker 1>very successful tobacco merchant. Um probably merchant is being too

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<v Speaker 1>narrowly defined. Uh. He was also a cousin to another

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<v Speaker 1>notable person in history, Carl Marx, who was the author

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<v Speaker 1>of the Communist Manifesto, and in fact, Marx would often

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<v Speaker 1>call upon his relatives, the Phillips whenever he was in

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<v Speaker 1>need of money. So while Marx was, you know, a

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<v Speaker 1>communist and believed very much in the distribution of wealth

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<v Speaker 1>across the workers, he was not above asking his wealthy

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<v Speaker 1>merchant class uh distant family for for cash when he

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<v Speaker 1>needed it. Frederick Phillips became a banker and he was

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<v Speaker 1>incredibly successful. He built up a really healthy fortune, and

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<v Speaker 1>he married a woman by the name of Mary Hayliger's.

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<v Speaker 1>By the way, there are a lot of Dutch names

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<v Speaker 1>in this and the next podcast that I will be butchering,

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<v Speaker 1>largely because Dutch is similar to German, which I know

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<v Speaker 1>a little bit of, but different enough that my instincts

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<v Speaker 1>on how to pronounce things are often going to be wrong.

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<v Speaker 1>So my apologies to all of you Dutch speakers out

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<v Speaker 1>there and really everyone else too, as I butcher these names.

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<v Speaker 1>But I'm gonna do my best anyway. Frederick Phillips and

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<v Speaker 1>his wife had ten children, not all of them survived

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<v Speaker 1>to adulthood, and one of those children was a son

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<v Speaker 1>by the name of Gerard Leonardo Frederick Phillips, best known

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<v Speaker 1>just as Gerard Phillips. Now, when Frederick was in his sixties,

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<v Speaker 1>he became inspired by his son, Gerard, who was interested

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<v Speaker 1>in making carbon filaments for lightbulbs. This would be around

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<v Speaker 1>eighteen one, and that was around when electricity was kind

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<v Speaker 1>of on the verge of replacing gas lamps for lighting.

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<v Speaker 1>But as we've talked about in tech stuff on previous occasions,

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<v Speaker 1>it was really tricky to build an electric light bulb

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<v Speaker 1>that could burn brightly enough and last long enough to

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<v Speaker 1>be a practical replacement for gas lamp. A lot of

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<v Speaker 1>those early filaments would burn out very rapidly, and in fact,

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<v Speaker 1>it was a lot of different innovators who were working

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<v Speaker 1>in this space to try and find a way to

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<v Speaker 1>make those filaments last long enough for an electric light

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<v Speaker 1>bulb to really be practical. In fact, I would argue

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<v Speaker 1>that Edison's major contribution was the development of a filament

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<v Speaker 1>that was longer lasting than most of the predecessors. Uh

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<v Speaker 1>he didn't invent the light bulb. He just improved upon it. Well.

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<v Speaker 1>Gerard was interested in this as well and was working

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<v Speaker 1>very hard on trying to come up with a carbon

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<v Speaker 1>filament that could be of practical use. And he went

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<v Speaker 1>to his father and said, maybe we could create a

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<v Speaker 1>company specifically for this purpose, and Frederick Phillips agreed to

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<v Speaker 1>back his son Gerard and they formed the Phillips and Company.

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<v Speaker 1>Uh they actually purchased a factory in the town of

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<v Speaker 1>Eindhoven to make lightbulbs. Now, at that time, Eindhoven was

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<v Speaker 1>sort of a modest industrial town. Today it's actually known

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<v Speaker 1>as a center of innovation and high tech scholarship, and

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<v Speaker 1>that's largely due to the influence of the Phillips company.

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<v Speaker 1>But it didn't take off immediately. In fact, at first

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<v Speaker 1>the company really struggled. So Gerard was a mechanical engineer

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<v Speaker 1>and was really good at that. He was he was

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<v Speaker 1>very innovative, very clever. He graduated from delf University in

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<v Speaker 1>eighteen eighty three with a degree in mechanical engineering. And

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<v Speaker 1>he had also worked for a company called a e

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<v Speaker 1>G which, along with another company called Siemens and Hausk,

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<v Speaker 1>was a dominant player in the electric lighting industry in Europe. Now,

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<v Speaker 1>according to historical accounts, the lamps that Gerard was producing

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<v Speaker 1>from Phillips and Company were of excellent quality. They were

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<v Speaker 1>a amazingly long lasting lamps compared to the competitors, and

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<v Speaker 1>they're very pretty, very beautiful design. The factory itself had

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<v Speaker 1>twenty eight people working there and they were earning good

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<v Speaker 1>wages comparatively speaking, So everything was going well on that end,

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<v Speaker 1>But the business itself was not doing so well. The

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<v Speaker 1>sales weren't reflecting the quality, and by nineteen by eighteen

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<v Speaker 1>ninety four, rather the business was already in trouble and

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<v Speaker 1>in fact teetering on the verge of bankruptcy. So it

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<v Speaker 1>was founded in eighteen by eighteen ninety four, it's already shaky.

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<v Speaker 1>And the main problem was that Gerard Phillips, while he

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<v Speaker 1>was an accomplished mechanical engineer, had very little business acumen.

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<v Speaker 1>He could produce amazing work, but he had trouble managing

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<v Speaker 1>the business side of things, and so in eighteen ninety

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<v Speaker 1>four his younger brother, Anton Ellops joined the company. Now,

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<v Speaker 1>Anton had a background in business and also was a

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<v Speaker 1>much more outgoing personality than his brother was. Gerard was

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<v Speaker 1>kind of a solitary worker. He preferred to do research

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<v Speaker 1>in the lab and have a quiet environment and avoid conversation,

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<v Speaker 1>which he often thought of as being unnecessary and a

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<v Speaker 1>distraction from work. Meanwhile, Anton was much more outgoing. He

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<v Speaker 1>enjoyed socializing and networking and was sort of a born salesman.

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<v Speaker 1>So together the two brothers were able to turn the

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<v Speaker 1>company around. Gerard was still the head of the company,

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<v Speaker 1>but Anton became kind of the director of sales, and

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<v Speaker 1>soon orders were pouring in from all over Europe and beyond.

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<v Speaker 1>One of the first big clients of the Phillips and

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<v Speaker 1>company uh business was the Star of Russia. So the

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<v Speaker 1>Russian tsar at really purchased Phillips lamps to light up

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<v Speaker 1>the Winter Palace to a pretty big deal, especially when

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<v Speaker 1>you consider that Karl Marx was a relative. Very interesting experience,

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<v Speaker 1>and there are in fact entire books written about Karl

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<v Speaker 1>Marx and the Phillips family and how that relationship was

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<v Speaker 1>complicated and how the different philosophies were at play. While

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<v Speaker 1>the Phillips family was still sympathetic at least two Marx's

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<v Speaker 1>plight enough so that they were giving him money when

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<v Speaker 1>he needed it. Very interesting stuff but kind of beyond

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<v Speaker 1>the scope of tech stuff. I'll leave that to stuff

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<v Speaker 1>you missed in history class. Maybe they can do an

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<v Speaker 1>episode about Karl Marx and his relationship with the Phillips family.

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<v Speaker 1>At any rate, back to Phillips UH. While Anton was

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<v Speaker 1>becoming something of a sales legend in Europe, his brother

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<v Speaker 1>Gerard headed up research and development back in Eindhoven. So

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<v Speaker 1>Gerard was constantly improving designs to build better lamps, and

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<v Speaker 1>then Anton would go and sell those designs to customers.

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<v Speaker 1>And because of Gerard's success, UH, and because of his

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<v Speaker 1>his reputation as a brilliant designer, Anton was actually able

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<v Speaker 1>to promise his clients that the company was always working

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<v Speaker 1>on improving designs and innovating in the space. And this

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<v Speaker 1>really became a great example of a buzzword known as synergy.

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<v Speaker 1>You've probably heard synergy a lot of times. Synergy it

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<v Speaker 1>basically means it's the process of creating a whole that's

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<v Speaker 1>greater than the sum of its parts. And this is

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<v Speaker 1>really the case with the Phillips brothers. Individually, they were

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<v Speaker 1>both intelligent men who were quite capable in their own spheres,

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<v Speaker 1>but together they were able to accomplish a lot more

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<v Speaker 1>than they could have done on their own. In fact,

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<v Speaker 1>as I just mentioned, if Gerard had not received help

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<v Speaker 1>from his brother, it's quite possible that the Phillips Company

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<v Speaker 1>would have gone bankrupt before they were able to really

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<v Speaker 1>make an impact well. By seven, the business changed because

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<v Speaker 1>carbon filaments went obsolete. There were there was a better

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<v Speaker 1>technology in place that would last longer, it burned brighter

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<v Speaker 1>and used the same amount of energy as carbon filaments,

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<v Speaker 1>and that would be tungsten wire filament. So Phillips and

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<v Speaker 1>Company switched to designing lamps that used tungsten wire. It

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<v Speaker 1>could actually produce three times the amount of light with

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<v Speaker 1>the same amount of electricity as a carbon filament lamp,

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<v Speaker 1>so it made sense to make that change. In nineteen twelve,

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<v Speaker 1>the company was listed on the AMSTERDAMN Stock Exchange and

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<v Speaker 1>became a limited company called all Right, I'm gonna give

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<v Speaker 1>it a shot, guys, but this is gonna be it's

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<v Speaker 1>it's gonna sound like a three year old trying to

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<v Speaker 1>sound out a word because it's it's very intimidating. So

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<v Speaker 1>the company became known as in V. Phillips Glow is

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<v Speaker 1>lump in fabricn gloile, lump and fabrican is how I

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<v Speaker 1>will say that, and all you Dutch speakers out there

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<v Speaker 1>can scoff at me justifiably anyway. A limited company, in

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<v Speaker 1>case you're wondering, it's an organization made up of investors,

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<v Speaker 1>and each of those investors is protected from liability to

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<v Speaker 1>the extent of their own investment in the business. So,

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<v Speaker 1>in other words, just just a simple example, if you

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<v Speaker 1>invested ten thousand dollars in a limited company, you couldn't

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<v Speaker 1>be held accountable for more than ten thousand dollars in

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<v Speaker 1>liability should something go catastrophically wrong. So really, a liability

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<v Speaker 1>company is meant to protect the people that invest in it.

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<v Speaker 1>It thus gives you an incentive to invest in the

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<v Speaker 1>pany because you stand to gain from your investment and

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<v Speaker 1>you're protected from anything really unfortunate. So, for example, if

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<v Speaker 1>it's proven that the company h mishandled funds in some

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<v Speaker 1>criminal way, you have a level of protection because of

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<v Speaker 1>the nature of that organization, assuming you're not the actual

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<v Speaker 1>person committing the crime. In nineteen fourteen, Phillips and Company

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<v Speaker 1>established the net Lab, which was a research and development

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<v Speaker 1>facility dedicated to innovation and improving existing technology. Now in

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<v Speaker 1>that lab in a T L a B. Is actually

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<v Speaker 1>a nickname. The full name for the facility is again,

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<v Speaker 1>all right, the Phillips neture Kundig Laboratory. UM, I'm so sorry. Anyway,

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<v Speaker 1>the center was necessary because by this time the company

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<v Speaker 1>was beginning to explore other technologies, not just incandescent lamps,

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<v Speaker 1>and the company also wanted to develop its own patents

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<v Speaker 1>so it wouldn't be dependent upon third parties. So by

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<v Speaker 1>that I mean, um, all right, So let's say that

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<v Speaker 1>that you want to be able to use a particular process. Well,

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<v Speaker 1>when a person or organization receives a patent, when they

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<v Speaker 1>filed for a patent and they're granted that patent, their

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<v Speaker 1>design is made public. That's part of the agreement to

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<v Speaker 1>have a process or design patented. When you do that,

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<v Speaker 1>that particular design is publicly available. Anyone can go and

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<v Speaker 1>pull up the patent and see how it is you're

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<v Speaker 1>doing the thing you are doing. That's all part of

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<v Speaker 1>the filing process. But in return for publicly saying this

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<v Speaker 1>is how we do things, the patent holder gets exclusive

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<v Speaker 1>rights to use that particulcular design or approach in whatever

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<v Speaker 1>way they want for a given amount of time, and

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<v Speaker 1>that given amount of time has changed over the years,

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<v Speaker 1>but essentially says that for x amount of years, you

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<v Speaker 1>get exclusive rights to this design. You can do whatever

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<v Speaker 1>you want with it, and if anyone else uses that

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<v Speaker 1>same design without your permission, you can sue them for infringement.

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<v Speaker 1>So the design is publicly available, which gives the protection.

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<v Speaker 1>Gives protection to the person who holds the patent because

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<v Speaker 1>then they can say, well, clearly, you stole my idea

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<v Speaker 1>because my idea is publicly available for you to read.

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<v Speaker 1>But I am protected. I can use that idea exclusively

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<v Speaker 1>and I did not give you permission. So even if

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<v Speaker 1>a company came up with its own approach that just

0:15:50.800 --> 0:15:53.560
<v Speaker 1>happened to be the same approach as what has already

0:15:53.760 --> 0:15:57.880
<v Speaker 1>been established in a patent, they would be liable because

0:15:57.920 --> 0:16:02.080
<v Speaker 1>they'd be using a system that was already documented in

0:16:02.120 --> 0:16:06.320
<v Speaker 1>the patent system. So it's a very interesting way of

0:16:06.360 --> 0:16:10.360
<v Speaker 1>protecting your ideas. But one thing you can do if

0:16:10.400 --> 0:16:12.680
<v Speaker 1>you own a patent is well, first, first of all,

0:16:12.720 --> 0:16:14.840
<v Speaker 1>you can sell it if you want. So if you

0:16:14.880 --> 0:16:18.160
<v Speaker 1>are the holder of a patent, you can actually sell

0:16:18.240 --> 0:16:21.480
<v Speaker 1>your patents to another entity. In fact, there are other

0:16:21.520 --> 0:16:24.000
<v Speaker 1>companies that that's all they do is just buy up patents.

0:16:24.720 --> 0:16:29.000
<v Speaker 1>But you can also license your patents to other parties. So,

0:16:29.040 --> 0:16:31.520
<v Speaker 1>in other words, you come up with a brilliant idea

0:16:31.720 --> 0:16:35.000
<v Speaker 1>on a way to design a particular style of lightbulb,

0:16:36.280 --> 0:16:39.720
<v Speaker 1>and a company wants to make lightbulbs using your design,

0:16:39.880 --> 0:16:42.680
<v Speaker 1>so they pay you a licensing fee, and in return,

0:16:42.720 --> 0:16:47.760
<v Speaker 1>you give them permission to use your patented idea. Everyone benefits.

0:16:47.920 --> 0:16:51.320
<v Speaker 1>The company can sell products and make make profit. That way,

0:16:51.680 --> 0:16:54.720
<v Speaker 1>you profit from being able to license your idea to

0:16:54.760 --> 0:16:57.840
<v Speaker 1>someone else. And in fact, there's some companies that's all

0:16:57.880 --> 0:17:02.160
<v Speaker 1>they do is licensed patents. They don't make anything. They

0:17:02.160 --> 0:17:05.879
<v Speaker 1>hold the patents for making stuff, but they don't necessarily

0:17:05.920 --> 0:17:08.879
<v Speaker 1>have any manufacturing facilities. They just licensed it out to

0:17:08.920 --> 0:17:13.280
<v Speaker 1>other people. They're also companies called patent trolls, and patent

0:17:13.320 --> 0:17:16.879
<v Speaker 1>trolls are a little different. Instead of licensing a patent

0:17:16.960 --> 0:17:21.080
<v Speaker 1>to other companies, they wait until a company makes a

0:17:21.160 --> 0:17:24.840
<v Speaker 1>product or some other system that infringes upon a patent

0:17:24.920 --> 0:17:28.400
<v Speaker 1>and then they threatened to sue unless the company settles

0:17:28.440 --> 0:17:32.200
<v Speaker 1>for an enormous sum of money out of court. And uh,

0:17:32.240 --> 0:17:34.640
<v Speaker 1>that's what a patent troll is. That it's a it's

0:17:34.640 --> 0:17:38.560
<v Speaker 1>an entity that has no interest in putting its patents

0:17:38.560 --> 0:17:41.560
<v Speaker 1>to work in any way other than as a means

0:17:41.760 --> 0:17:47.000
<v Speaker 1>of leveraging power over other companies that would want to

0:17:47.119 --> 0:17:52.320
<v Speaker 1>use that process. All right, at any rate, Gerard and

0:17:52.400 --> 0:17:55.800
<v Speaker 1>Anton thought it was really intelligent to develop a company

0:17:55.920 --> 0:18:01.360
<v Speaker 1>specific research and development facility to help file patents so

0:18:01.400 --> 0:18:04.919
<v Speaker 1>that the company itself wouldn't have to rely on licensing

0:18:04.960 --> 0:18:09.919
<v Speaker 1>these third party entities in order to make stuff. The

0:18:10.000 --> 0:18:12.480
<v Speaker 1>first director of the nat Lab was a man named

0:18:12.640 --> 0:18:19.040
<v Speaker 1>Jiels Holst. Holst was an engineer turned physicist, a doctor.

0:18:19.160 --> 0:18:23.200
<v Speaker 1>Doctor Holst a former teacher. He was a professional researcher.

0:18:24.119 --> 0:18:28.440
<v Speaker 1>He did early research into super conductivity. That's where you

0:18:28.800 --> 0:18:32.960
<v Speaker 1>cool down a conductive substance, you know, a metal, You

0:18:33.000 --> 0:18:36.240
<v Speaker 1>cool it down to very very very low temperatures and

0:18:36.280 --> 0:18:41.360
<v Speaker 1>that will eliminate electrical resistance, meaning you have a perfect conductor. Uh.

0:18:41.520 --> 0:18:44.959
<v Speaker 1>Holst also had worked with Madame Curie in some of

0:18:44.960 --> 0:18:50.080
<v Speaker 1>her experiments and radio activity, so very important person. And

0:18:50.160 --> 0:18:53.600
<v Speaker 1>Holst was a big thinker, and he was determined to

0:18:53.640 --> 0:18:57.159
<v Speaker 1>give his researchers a huge amount of freedom to explore

0:18:57.320 --> 0:19:03.280
<v Speaker 1>fundamental scientific questions, even if there were no immediately applicable

0:19:03.359 --> 0:19:07.560
<v Speaker 1>outcomes to that that that area of inquiry. So in

0:19:07.600 --> 0:19:11.400
<v Speaker 1>other words, he said, it doesn't matter if the questions

0:19:11.440 --> 0:19:14.800
<v Speaker 1>you are asking immediately result in some sort of product

0:19:14.880 --> 0:19:18.800
<v Speaker 1>that Phillips can sell. It's important for us to answer

0:19:18.840 --> 0:19:21.960
<v Speaker 1>the questions. So go out there and do that. And

0:19:22.000 --> 0:19:24.879
<v Speaker 1>the result was that then Lab became an important center

0:19:24.920 --> 0:19:28.480
<v Speaker 1>of research and Phillips and Company actually benefited as a result.

0:19:28.960 --> 0:19:33.280
<v Speaker 1>It's a good example of how fundamental research can result

0:19:33.400 --> 0:19:36.840
<v Speaker 1>in benefits, even if you didn't see the possibility when

0:19:36.880 --> 0:19:39.359
<v Speaker 1>you started out. Some of that research helped in the

0:19:39.400 --> 0:19:42.520
<v Speaker 1>development of infrared and X ray technology, which no one

0:19:42.560 --> 0:19:46.240
<v Speaker 1>really could have predicted at the time. Host was also

0:19:47.080 --> 0:19:51.760
<v Speaker 1>UH important because he invited individuals in the scientific field

0:19:51.800 --> 0:19:55.800
<v Speaker 1>to come to nat Lab and to give lectures. For example,

0:19:56.400 --> 0:20:01.159
<v Speaker 1>a physicist of certain renown named Albert Einstein gave a

0:20:01.160 --> 0:20:04.679
<v Speaker 1>talk at that lab in nineteen twenty three. So it

0:20:04.760 --> 0:20:08.280
<v Speaker 1>really was a center of learning and research and UH

0:20:08.280 --> 0:20:10.879
<v Speaker 1>and kind of a point of pride in the Netherlands

0:20:10.920 --> 0:20:14.800
<v Speaker 1>as well. All right, well, let's go back to nineteen

0:20:14.840 --> 0:20:19.600
<v Speaker 1>fifteen UH and the history of the company. So now

0:20:19.640 --> 0:20:23.440
<v Speaker 1>we're getting into the time of World War One, um, which,

0:20:23.640 --> 0:20:26.520
<v Speaker 1>of course back then was just the Great War, So

0:20:26.640 --> 0:20:30.400
<v Speaker 1>the Netherlands maintained a neutral status during World War One

0:20:30.760 --> 0:20:35.240
<v Speaker 1>and as a result, operations at Phillips remained largely undisturbed.

0:20:35.960 --> 0:20:39.800
<v Speaker 1>In addition, the war was creating coal shortages, and that

0:20:39.880 --> 0:20:42.760
<v Speaker 1>meant that it was harder for people for companies to

0:20:42.800 --> 0:20:46.679
<v Speaker 1>produce coal gas, which meant it was harder to fuel

0:20:46.760 --> 0:20:49.639
<v Speaker 1>gas lamps, and it forced a lot more people to

0:20:49.680 --> 0:20:52.640
<v Speaker 1>convert to using electricity. So, in other words, World War

0:20:52.720 --> 0:20:58.240
<v Speaker 1>One actually generated business for the Phillips company. So to

0:20:58.280 --> 0:21:01.679
<v Speaker 1>support the production of new lamps, Phillips invested in a

0:21:01.720 --> 0:21:05.400
<v Speaker 1>couple of different properties to uh to really ramp up production.

0:21:05.440 --> 0:21:08.160
<v Speaker 1>One of them was an Argone production facility. They had

0:21:08.160 --> 0:21:12.280
<v Speaker 1>a Argone lamp that was efficient and inexpensive, so it

0:21:12.359 --> 0:21:17.439
<v Speaker 1>was very popular. They also purchased a glass manufacturing plant

0:21:17.560 --> 0:21:20.480
<v Speaker 1>in order to ramp up production on their lamps. In

0:21:20.560 --> 0:21:24.120
<v Speaker 1>nineteen nineteen, Phillips introduced a medical X ray tube, which

0:21:24.119 --> 0:21:28.600
<v Speaker 1>officially diversified the company from just the incandescent lamp business.

0:21:29.080 --> 0:21:32.840
<v Speaker 1>Then that lab was busy researching technologies and filing patents

0:21:32.880 --> 0:21:37.199
<v Speaker 1>for everything from gas diffusion to radio wave reception and

0:21:37.240 --> 0:21:41.080
<v Speaker 1>the company also began to expand to other countries. They

0:21:41.119 --> 0:21:44.400
<v Speaker 1>opened up sales forces in the United States and in France,

0:21:44.560 --> 0:21:48.760
<v Speaker 1>and a little bit later in Australia, Brazil and China,

0:21:48.920 --> 0:21:53.040
<v Speaker 1>so they were not taking things slowly. In the early

0:21:53.119 --> 0:21:56.400
<v Speaker 1>part of the twentieth century. Now, the X ray business

0:21:56.440 --> 0:22:00.480
<v Speaker 1>was still really new in nineteen nineteen. Phillips started in

0:22:00.480 --> 0:22:03.360
<v Speaker 1>the business by repairing X ray tubes during World War

0:22:03.440 --> 0:22:07.000
<v Speaker 1>One and then moved to manufacturing tubes on a small

0:22:07.080 --> 0:22:11.080
<v Speaker 1>scale in the Phillips research laboratory. But early X ray

0:22:11.119 --> 0:22:15.040
<v Speaker 1>tubes had some pretty distinct disadvantages. One was that they

0:22:15.040 --> 0:22:19.159
<v Speaker 1>emitted radiation in all directions, not just whichever one you

0:22:19.200 --> 0:22:22.640
<v Speaker 1>happen to be interested in, which is not just inefficient,

0:22:22.840 --> 0:22:27.720
<v Speaker 1>it's also dangerous. Because X ray radiation is ionizing radiation.

0:22:27.920 --> 0:22:31.119
<v Speaker 1>It can potentially cause cancer if you're exposed to it,

0:22:31.520 --> 0:22:36.080
<v Speaker 1>so having it emit in all directions was not safe.

0:22:37.320 --> 0:22:41.520
<v Speaker 1>They also relied on high voltage cables, which were exposed

0:22:41.560 --> 0:22:44.560
<v Speaker 1>and thus potentially dangerous. You can electrocute yourself even if

0:22:44.600 --> 0:22:47.240
<v Speaker 1>you were safe from the radiation, you could just die

0:22:47.280 --> 0:22:52.320
<v Speaker 1>from the electricity. But a man known as a Bowers

0:22:52.800 --> 0:22:57.600
<v Speaker 1>of the Phillips Research labor Laboratory came up with a solution.

0:22:58.280 --> 0:23:02.399
<v Speaker 1>Bowers designed a cylindrical X ray tube. The earlier X

0:23:02.520 --> 0:23:05.760
<v Speaker 1>ray tubes were actually spherical, so kind of like a

0:23:05.880 --> 0:23:09.600
<v Speaker 1>light bulb is. But the ones the Bowers made were

0:23:09.640 --> 0:23:14.320
<v Speaker 1>cylindrical and had a grounded metal canister with a glass

0:23:14.359 --> 0:23:17.840
<v Speaker 1>window on one side of the canister. So imagine that

0:23:17.880 --> 0:23:24.480
<v Speaker 1>you've got a cylindrical uh, glass tube. You slide that

0:23:24.520 --> 0:23:28.440
<v Speaker 1>into a metal canister. The metal canister has one side cutout,

0:23:28.520 --> 0:23:31.760
<v Speaker 1>so it's like a window, and then you coat the

0:23:31.800 --> 0:23:35.600
<v Speaker 1>metal canister with lead and that way, when you turn

0:23:35.680 --> 0:23:39.120
<v Speaker 1>on the X ray tube, X rays can only come

0:23:39.119 --> 0:23:42.119
<v Speaker 1>out the window side. They can't go through the lead

0:23:42.400 --> 0:23:47.080
<v Speaker 1>lined case. So you thus made it more efficient and

0:23:47.160 --> 0:23:49.720
<v Speaker 1>safer because you could you could direct the path of

0:23:49.760 --> 0:23:52.560
<v Speaker 1>the X rays. Uh. It took a few tweaks to

0:23:52.640 --> 0:23:55.200
<v Speaker 1>get the design just right, but it was a success

0:23:55.680 --> 0:23:58.919
<v Speaker 1>and Phillips began to market it. They called it Meta

0:23:59.000 --> 0:24:03.200
<v Speaker 1>licks or metallic X M E T A l I X.

0:24:04.600 --> 0:24:06.600
<v Speaker 1>Now I'm gonna take a quick break from talking about

0:24:06.760 --> 0:24:08.439
<v Speaker 1>X rays for a second. I'm gonna come back to

0:24:08.480 --> 0:24:10.359
<v Speaker 1>that in a minute, but I want to mention a

0:24:10.359 --> 0:24:14.960
<v Speaker 1>few things that also happened around this same time frame. First,

0:24:15.040 --> 0:24:21.200
<v Speaker 1>in nineteen twenty, a company called Yeah, that's happening again,

0:24:21.200 --> 0:24:25.760
<v Speaker 1>all right? A company called en V Gamen shopill Lick

0:24:26.720 --> 0:24:35.040
<v Speaker 1>binzit Von and Lean Phillips, Globump and fabriacn formed and

0:24:35.119 --> 0:24:38.919
<v Speaker 1>assumed ownership of Phillips. Boy, I sound like I've had

0:24:38.920 --> 0:24:41.760
<v Speaker 1>a stroke, but the short name for it was n

0:24:41.880 --> 0:24:47.879
<v Speaker 1>z bin Zi. Two years later, Gerard Phillips retires as CEO,

0:24:48.240 --> 0:24:51.960
<v Speaker 1>so nine two he steps down and Anton Phillips, his

0:24:52.040 --> 0:24:57.560
<v Speaker 1>younger brother, assumes the position of chairman. At age now

0:24:57.560 --> 0:25:02.080
<v Speaker 1>a nineteen seven Phillips bought a company called c. H F.

0:25:02.320 --> 0:25:06.400
<v Speaker 1>Mueller of Hamburg. So this is a German company, which

0:25:06.440 --> 0:25:09.920
<v Speaker 1>is why I know how to pronounce it. C h F.

0:25:10.080 --> 0:25:14.040
<v Speaker 1>Mueller was founded by Carl Heinrich Florence Mueller in the

0:25:14.119 --> 0:25:19.160
<v Speaker 1>nineteenth century and originally was a glass company. Mueller himself

0:25:19.640 --> 0:25:25.320
<v Speaker 1>was known for being a very artistic uh glassblower, and

0:25:25.359 --> 0:25:29.520
<v Speaker 1>the early products from Mueller were these decorative pieces like

0:25:30.040 --> 0:25:34.080
<v Speaker 1>goblets and wine glasses. But over time Mueller began to

0:25:34.119 --> 0:25:37.320
<v Speaker 1>refine his process to build glass for gas diffusion and

0:25:37.440 --> 0:25:43.200
<v Speaker 1>incandescent bulbs, and Mueller also had a reputation and a

0:25:43.359 --> 0:25:48.320
<v Speaker 1>history that was tightly tied to X rays. So to

0:25:48.440 --> 0:25:51.040
<v Speaker 1>explain that, we actually have to look back at the

0:25:51.119 --> 0:25:56.119
<v Speaker 1>discovery of X rays. So let's let's look at so

0:25:56.160 --> 0:26:01.520
<v Speaker 1>in while Gerard was being askewed by his brother Anton,

0:26:02.400 --> 0:26:08.919
<v Speaker 1>there was a physicist named Wilhelm Konrad round jin Um.

0:26:08.960 --> 0:26:12.080
<v Speaker 1>He was experimenting with cathode rays and produced X rays.

0:26:12.480 --> 0:26:15.520
<v Speaker 1>He was not the only scientist who had been experimenting

0:26:15.560 --> 0:26:20.560
<v Speaker 1>with this. Nicola Tesla is another notable person who who

0:26:20.760 --> 0:26:25.359
<v Speaker 1>noticed the the existence of X rays, although he didn't

0:26:25.840 --> 0:26:30.880
<v Speaker 1>fully appreciate the the applications of it. But on November

0:26:32.520 --> 0:26:37.200
<v Speaker 1>round Gin discovered a screen coated with barry um platino

0:26:37.400 --> 0:26:42.280
<v Speaker 1>cyanide with fluoresce when a nearby gas discharged to activated

0:26:42.640 --> 0:26:46.720
<v Speaker 1>even when there was a black cardboard barriers separating the two,

0:26:46.760 --> 0:26:49.399
<v Speaker 1>and he was wondering, what how is that happening? What's

0:26:50.200 --> 0:26:53.520
<v Speaker 1>why is it fluorescing? What's causing that? So he began

0:26:53.560 --> 0:26:56.720
<v Speaker 1>to explore this curious phenomenon and as a result, he

0:26:56.800 --> 0:26:59.840
<v Speaker 1>identified X rays. He noted in one experiment that if

0:26:59.840 --> 0:27:02.959
<v Speaker 1>you put your hand between the discharging tube and a screen,

0:27:03.480 --> 0:27:05.800
<v Speaker 1>you could see an image of your hand on the

0:27:05.800 --> 0:27:10.119
<v Speaker 1>screen with your bones a darker image than your flesh.

0:27:10.440 --> 0:27:13.920
<v Speaker 1>That wasn't exactly a high resolution X ray at that time,

0:27:13.960 --> 0:27:16.760
<v Speaker 1>but it showed the potential for it, and not long

0:27:16.800 --> 0:27:20.480
<v Speaker 1>after he published his findings, researchers at the National Physics

0:27:20.600 --> 0:27:26.960
<v Speaker 1>Laboratory reproduced the effect using a cathode ray tube from C. H. F. Mueller.

0:27:28.040 --> 0:27:31.639
<v Speaker 1>The results were interesting but pretty fuzzy, and so the

0:27:31.680 --> 0:27:35.800
<v Speaker 1>researchers got in direct contact with Mueller explained what it

0:27:35.840 --> 0:27:37.679
<v Speaker 1>was they were trying to do, and so Mueller and

0:27:37.680 --> 0:27:41.679
<v Speaker 1>the researchers together began to try and develop a better

0:27:41.840 --> 0:27:46.640
<v Speaker 1>cathode ray, specifically for X ray production. So they refined

0:27:46.800 --> 0:27:51.360
<v Speaker 1>their approach. Now, by the time Phillips acquired the company

0:27:51.400 --> 0:27:54.479
<v Speaker 1>of C. H. F. Mueller, they had that company had

0:27:54.480 --> 0:27:57.159
<v Speaker 1>already become a leading provider of X ray technology, So

0:27:57.200 --> 0:28:00.960
<v Speaker 1>now Phillips had become the name an X ray tech.

0:28:02.080 --> 0:28:06.560
<v Speaker 1>Also in nineteen Phillips was starting to get into the

0:28:06.640 --> 0:28:11.680
<v Speaker 1>radio business. Now, I've done several episodes about the history

0:28:11.880 --> 0:28:15.159
<v Speaker 1>of radio, including a discussion about who invented radio in

0:28:15.200 --> 0:28:17.920
<v Speaker 1>the first place. In fact, that was an episode Chris

0:28:17.920 --> 0:28:22.760
<v Speaker 1>Palette and I recorded and famously. After the first attempt,

0:28:22.920 --> 0:28:27.359
<v Speaker 1>we both agreed that the episode we had just recorded

0:28:27.440 --> 0:28:31.040
<v Speaker 1>was awful, and we immediately trashed it and went back

0:28:31.080 --> 0:28:33.840
<v Speaker 1>and recorded it a second time. So if you go

0:28:33.920 --> 0:28:36.400
<v Speaker 1>back into the archives of Tech Stuff and you listen

0:28:36.440 --> 0:28:39.560
<v Speaker 1>to the episode who Invented the Radio, that's actually our

0:28:39.640 --> 0:28:43.360
<v Speaker 1>second try at that topic. The first one is lost

0:28:43.720 --> 0:28:46.200
<v Speaker 1>forever because I think we deleted it. I don't think

0:28:46.440 --> 0:28:50.520
<v Speaker 1>it even exists in our archives. But as it turns out,

0:28:50.880 --> 0:28:52.880
<v Speaker 1>it's a tough question to answer. It's a lot more

0:28:52.920 --> 0:28:56.600
<v Speaker 1>complicated than just saying Nicola Tesla invented radio or Marconi

0:28:56.680 --> 0:29:00.400
<v Speaker 1>invented radio. But no matter how complex the origin of

0:29:01.080 --> 0:29:06.440
<v Speaker 1>the radio, it was incredibly popular. It's pretty easy to

0:29:06.520 --> 0:29:09.640
<v Speaker 1>understand why people flocked to the radio because it was

0:29:09.640 --> 0:29:13.800
<v Speaker 1>a new form of receiving communication from the world at large.

0:29:13.960 --> 0:29:18.760
<v Speaker 1>You could get news immediately from miles and miles away,

0:29:19.480 --> 0:29:24.880
<v Speaker 1>and it was a revolution in communication. And so Phillips

0:29:24.920 --> 0:29:29.080
<v Speaker 1>became a leading manufacturer of radios in the Netherlands. In

0:29:29.200 --> 0:29:33.200
<v Speaker 1>nineteen thirty two, just five years after getting into the industry,

0:29:33.240 --> 0:29:37.240
<v Speaker 1>Phillips had already sold its one million radio set and

0:29:37.360 --> 0:29:40.600
<v Speaker 1>also became the leading manufacturer of radios and radio tubes,

0:29:40.760 --> 0:29:45.680
<v Speaker 1>not just in Europe but in the whole world. However,

0:29:46.520 --> 0:29:50.360
<v Speaker 1>the following decade, the nineteen thirties, that just they weren't

0:29:50.360 --> 0:29:54.280
<v Speaker 1>all that prosperous. Uh. There was a depression in europe

0:29:54.600 --> 0:29:58.440
<v Speaker 1>An economic depression, and Phillips was affected just like other

0:29:58.480 --> 0:30:01.120
<v Speaker 1>companies were, and so the comp he had to restructure

0:30:01.160 --> 0:30:03.920
<v Speaker 1>and had to lay off a lot of employees and

0:30:04.040 --> 0:30:08.480
<v Speaker 1>scaled down and focus. But one thing they did not

0:30:08.600 --> 0:30:12.120
<v Speaker 1>do is skimp on research and development. The company actually

0:30:12.160 --> 0:30:14.640
<v Speaker 1>committed even more resources towards R and D in the

0:30:14.680 --> 0:30:18.000
<v Speaker 1>hopes of becoming more nimble to a changing market. The

0:30:18.040 --> 0:30:21.880
<v Speaker 1>idea being that things were going to evolve very quickly

0:30:22.040 --> 0:30:25.880
<v Speaker 1>and only through scientific inquiry would the company be able

0:30:25.920 --> 0:30:29.280
<v Speaker 1>to stay ahead of the game. And around that same time,

0:30:30.160 --> 0:30:33.880
<v Speaker 1>engineers in then lab had been experimenting with a new

0:30:33.960 --> 0:30:39.120
<v Speaker 1>technology called television that was largely an internal project within

0:30:39.160 --> 0:30:43.080
<v Speaker 1>the company until about ninety eight, which is when Phillips

0:30:43.080 --> 0:30:46.000
<v Speaker 1>presented a showcase of their black and white television set

0:30:46.080 --> 0:30:50.000
<v Speaker 1>at the annual fair in Utrecht. Phillips would remain a

0:30:50.040 --> 0:30:54.400
<v Speaker 1>television manufacturer until two thousand eleven, when the company decided

0:30:54.440 --> 0:30:57.320
<v Speaker 1>that the market was too competitive, and at that point

0:30:57.360 --> 0:31:01.120
<v Speaker 1>Phillips shut down its TV manufacturing centers and entered a

0:31:01.200 --> 0:31:05.160
<v Speaker 1>partnership with another company called t p V Technology out

0:31:05.160 --> 0:31:09.520
<v Speaker 1>of Hong Kong. That agreement formed a new organization that

0:31:09.560 --> 0:31:13.920
<v Speaker 1>would develop and market television's using the Phillips brand, but

0:31:14.280 --> 0:31:18.320
<v Speaker 1>it was only thirty owned by Phillips. T p p

0:31:18.400 --> 0:31:23.360
<v Speaker 1>V would own the remaining se of that organization, So

0:31:24.440 --> 0:31:28.160
<v Speaker 1>the Phillips television sets you see today are Phillips in

0:31:28.360 --> 0:31:32.960
<v Speaker 1>name only. Really, it's a brand that exists, but it's

0:31:32.960 --> 0:31:37.960
<v Speaker 1>not manufactured in a Phillips factory. In nine nine, Phillips

0:31:38.000 --> 0:31:41.600
<v Speaker 1>stuck its toe in another area of consumer electronics, the

0:31:41.680 --> 0:31:46.440
<v Speaker 1>electric shaver. Their product was called the Philip Shave, which

0:31:46.520 --> 0:31:50.040
<v Speaker 1>is hilarious to me. The original model had a chord,

0:31:50.200 --> 0:31:52.080
<v Speaker 1>so you had to plug it into the wall in

0:31:52.200 --> 0:31:56.080
<v Speaker 1>order to operate it. Uh. It was a cylindrical device

0:31:56.200 --> 0:32:00.080
<v Speaker 1>with a circular little metal surface. That's what count in

0:32:00.120 --> 0:32:03.080
<v Speaker 1>the rotating blades that you would use to cut the

0:32:03.280 --> 0:32:05.600
<v Speaker 1>hairs on your face, and it sort of looked like

0:32:05.600 --> 0:32:09.320
<v Speaker 1>an electric cucumber. In the United States, the brand name

0:32:09.360 --> 0:32:12.920
<v Speaker 1>for Philip's shaving devices was nore Elco. So if you've

0:32:12.920 --> 0:32:16.600
<v Speaker 1>heard of nore Elco, that's a Phillips brand, and the

0:32:16.640 --> 0:32:18.880
<v Speaker 1>rest of the world it was just called the Philip

0:32:18.880 --> 0:32:22.600
<v Speaker 1>Shave until about two thousand six. That's when Phillips began

0:32:22.680 --> 0:32:25.920
<v Speaker 1>to phase out the Philips shave brand name and start

0:32:25.960 --> 0:32:29.080
<v Speaker 1>to market them just under Phillips. Meanwhile, here in the US,

0:32:29.120 --> 0:32:35.360
<v Speaker 1>they included Phillips with nore Elco. Uh, probably an anticipation

0:32:35.400 --> 0:32:38.240
<v Speaker 1>of dropping the Norrelco name entirely, and so you would

0:32:38.280 --> 0:32:43.920
<v Speaker 1>just get Philip's brand, uh, you know, shavers all across

0:32:43.960 --> 0:32:46.560
<v Speaker 1>the world and not have this this different brand name

0:32:46.600 --> 0:32:49.760
<v Speaker 1>in different countries. Nonsense going on, and as time went on,

0:32:49.800 --> 0:32:52.280
<v Speaker 1>they would add other products to this line, things like

0:32:52.320 --> 0:32:56.240
<v Speaker 1>beard tremmors and hair trimmers, that kind of stuff, And

0:32:56.280 --> 0:32:58.760
<v Speaker 1>so they created sort of a consumer products division within

0:32:58.840 --> 0:33:05.240
<v Speaker 1>Phillips beyond just lightbulbs and radio and television sets. No.

0:33:05.440 --> 0:33:09.080
<v Speaker 1>Nineteen nine was also the year that Anton Phillips resigned

0:33:09.080 --> 0:33:11.680
<v Speaker 1>as president, though he would remain an advisor to the

0:33:11.720 --> 0:33:16.680
<v Speaker 1>company for several more years. His son in law, Franz Aughton,

0:33:17.160 --> 0:33:22.120
<v Speaker 1>became president and his actual son, Fritz Phillips became a

0:33:22.160 --> 0:33:27.680
<v Speaker 1>director of the company. So Uh, Anton's son, Fritz would

0:33:27.680 --> 0:33:33.360
<v Speaker 1>report to Anton's son in law, Franz Fritz and Franz

0:33:34.280 --> 0:33:40.680
<v Speaker 1>NTY was a very tumultuous year for the company. The

0:33:40.720 --> 0:33:45.040
<v Speaker 1>Netherlands didn't have the luxury of remaining neutral in World

0:33:45.120 --> 0:33:47.160
<v Speaker 1>War Two the way they did in World War One,

0:33:47.560 --> 0:33:50.200
<v Speaker 1>and in fact, it became clear that Germany was preparing

0:33:50.240 --> 0:33:54.440
<v Speaker 1>to invade the Netherlands. So an anticipation of that upcoming invasion,

0:33:54.760 --> 0:33:59.880
<v Speaker 1>Franz Arton and Anton Phillips formed the North American Phillips

0:34:00.040 --> 0:34:04.240
<v Speaker 1>Corporation or in a PC in the United States, and

0:34:04.280 --> 0:34:07.760
<v Speaker 1>then they began to relocate operations to America in order

0:34:07.760 --> 0:34:12.759
<v Speaker 1>to avoid the conflict UH. On paper, the business was

0:34:12.800 --> 0:34:18.319
<v Speaker 1>still listed as being a Netherlands company, a Netherlands based company,

0:34:18.400 --> 0:34:23.319
<v Speaker 1>probably for tax purposes, but effectively management was shifting to

0:34:23.360 --> 0:34:27.160
<v Speaker 1>the United States, and when Germany invaded the Netherlands, it

0:34:27.239 --> 0:34:30.680
<v Speaker 1>took about five days of fighting before the Dutch government surrendered.

0:34:30.880 --> 0:34:32.640
<v Speaker 1>They were pretty much forced to. They just were not

0:34:32.719 --> 0:34:37.839
<v Speaker 1>equipped to resist the Nazi occupation of the Netherlands, and

0:34:37.960 --> 0:34:41.319
<v Speaker 1>so at that point Phillip's management, the ones who had

0:34:41.360 --> 0:34:44.440
<v Speaker 1>not already moved to the United States fled first to

0:34:44.520 --> 0:34:47.880
<v Speaker 1>England and then from England. They went to the US

0:34:48.000 --> 0:34:52.040
<v Speaker 1>to join the n a PC. Now, this is where

0:34:52.080 --> 0:34:56.719
<v Speaker 1>we're going to bring Part one to an end, and

0:34:56.800 --> 0:34:58.880
<v Speaker 1>in Part two, we're going to talk about what happened

0:34:58.880 --> 0:35:04.080
<v Speaker 1>to Anton Phillips his son, Frits Phillips during World War Two.

0:35:04.080 --> 0:35:08.600
<v Speaker 1>Because Fritz, unlike his father and his uh, you know,

0:35:08.680 --> 0:35:12.680
<v Speaker 1>his brother in law, he stayed in the Netherlands. He

0:35:12.719 --> 0:35:15.919
<v Speaker 1>did not move to the United States. So his story

0:35:16.000 --> 0:35:18.840
<v Speaker 1>during World War Two is very different from everyone else's

0:35:18.880 --> 0:35:22.320
<v Speaker 1>story who moved over to the US. And I'll also

0:35:22.360 --> 0:35:26.400
<v Speaker 1>talk a little bit about how Phillips became really important

0:35:26.400 --> 0:35:31.040
<v Speaker 1>in establishing several different media standards, which were alluded to

0:35:31.120 --> 0:35:33.719
<v Speaker 1>in Roger's message when he asked that we would cover

0:35:33.840 --> 0:35:36.640
<v Speaker 1>this topic in the first place. And we'll also take

0:35:36.640 --> 0:35:40.359
<v Speaker 1>a look at the uncertain future of Phillips and and

0:35:40.400 --> 0:35:43.399
<v Speaker 1>why is it uncertain in the first place. Meanwhile, if

0:35:43.400 --> 0:35:47.440
<v Speaker 1>you have suggestions for tech Stuff topics or future guests

0:35:47.920 --> 0:35:50.319
<v Speaker 1>of people who you would like to have on as

0:35:50.719 --> 0:35:53.840
<v Speaker 1>either someone I interview or a guest host, you should

0:35:53.880 --> 0:35:57.640
<v Speaker 1>let me know. Email me. The address is tech Stuff

0:35:57.880 --> 0:36:00.799
<v Speaker 1>at how stuff works dot com, or you can drop

0:36:00.840 --> 0:36:04.040
<v Speaker 1>me a line on Facebook, Twitter, or tumbler. The handle

0:36:04.080 --> 0:36:07.000
<v Speaker 1>I use at all three is tech stuff H. S W.

0:36:07.760 --> 0:36:11.120
<v Speaker 1>And I'll talk to you again about Phillips really soon

0:36:16.600 --> 0:36:19.040
<v Speaker 1>for more on this and bathands of other topics because

0:36:19.080 --> 0:36:29.719
<v Speaker 1>it has stock works dot com