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: Between 2000 and 2016, Porsche licensed its brand exclusively to Electronic Arts to be used in a video game called ”Need for Speed”. The game’s audience was exposed to Porsche’s brand in the setting its exposure is most effective, namely, fast-paced video game scenes featuring iconic, state-of-the-art models of the car maker.
Learn more about Porsche →
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.
Learn more about SAP →
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.
Learn more about General Electric →
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 →