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License 26#
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.
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Examples: Iconic Cases
How they do it: Bayer licensing agreements can range from very comprehensive approaches and multiple assets to focused single asset options in early or later stages of the drug development process. This also includes research alliances under very comprehensive licensing agreements with academic institutes and research centers, whose technologies complement Bayer’s own expertise in our core research areas.
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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: 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.
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How they do it: Ford uses its iconic blue oval logo to license its use to other product areas besides cars and has build a substantial amount of revenue in this area. Licensees include categories such as aftermarket stores, dealers, merchandise, toys or video games. However the intention behind it is not only to generate additional revenue but also to widen the reach of the brand and ”bring the brand where the consumer is” (e.g. convenient stores).
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How they do it: Levi’s is not designing and manufacturing new products for all its brands on its own but has several geography and brand based licensing deals in place. This allows a 3rd party to design, produce and distribute clothing under one of the Levi’s brands.
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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 15 firms using this pattern.
Top Industries
Automotive
45% of firms using pattern
45% of firms using pattern
Transportation
29% of firms using pattern
29% of firms using pattern
Information Technology
6% of firms using pattern
6% of firms using pattern
All Industries
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.
Top Co-Occurrences
Integrator
2 pattern co-occurrences
2 pattern co-occurrences
Direct Selling
2 pattern co-occurrences
2 pattern co-occurrences
Reverse Engineering
2 pattern co-occurrences
2 pattern co-occurrences