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: Max Havelaar’s fair trade license shows consumers that the products with the Max Havelaar logo have been approved by the foundation and its partner members. Producers can apply with the foundation to become a licensee by filing an application and adhering to standards set forth in a licensing agreement. In addition they pay a license fee to the foundation and admit to regular audit processes.
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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 →
How they do it: GE licenses IP and technology across its operating areas, enabling 3rd parties to commercialize their developments more rapidly and create new companies based on them. GE also provides adjacent resources such as training and scientists to accelerate the process of bringing new technologies to market.
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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: Brilliance licensed production rights from German manufacturer BMW producing its cars in China for the Chinese market.
Learn more about Brilliance China Auto →
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.
