Efforts are focused on developing intellectual property that can be licensed to other manufacturers. This model, therefore, relies not on the realization and utilization of knowledge in the form of products, but attempts to transform these intangible goods into money. This allows a company to focus on research and development. It also allows the provision of knowledge, which would otherwise be left unused and potentially be valuable to third parties.
How they do it: Brilliance licensed production rights from German manufacturer BMW producing its cars in China for the Chinese market.
Learn more about Brilliance China Auto →
How they do it: As Bosch investes a lot in research and development of its technologies but don’t create and market full products out of every patent, they monetize these patents by licensing them to partners.
Learn more about Bosch →
How they do it: ARM only creates and licences its technology as intellectual property, rather than selling its own physical products. This allows them to focus on specializing on further developing their technology.
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How they do it: SAP enables customers to license its software products and offerings in a variety of ways. These include for instance perpetual, subscription-based, or consumption-based licenses. This flexibility allows SAP to serve a group of customers with heterogenous customer needs.
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How they do it: In 2010, Toyota licensed its hybrid vehicle technology to Mazda. Mazda leveraged this technology to introduce a hybrid vehicle in 2013 in the Japanese market, based partly on the Toyota Prius hybrid technology.
Learn more about Toyota →
Below, the top industries for the pattern "License" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Below, the pattern "License" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
