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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.
Examples: Iconic Cases
How they do it: As IBM is the business with most patents generated per year in the US, it provides customers to license some of its IP. This includes not only the licensing of the patent but also access to IBM’s team of researchers, scientists and developers and further infrastructure to generate revenues with the IP.
Learn more about IBM →
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.
Learn more about Levi's →
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: Google licenses its IP through various products to 3rd parties which wish to use a certain technology or build a business based upon it. For this purpsoe, Google runs a web portal where 3rd parties can apply for the use or acquisition of a patent.
Learn more about Google →
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).
Learn more about Ford →
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
50% of firms using pattern
50% of firms using pattern
Transportation
36% of firms using pattern
36% of firms using pattern
Information Technology
8% of firms using pattern
8% 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