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: 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 →
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.
Learn more about ARM →
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: 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: BASF licenses certain patent portfolios to partners, e.g. in the area of battery technology.
Learn more about BASF →
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.
Top Industries
45% of firms using pattern
29% 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
3 pattern co-occurrences
3 pattern co-occurrences
2 pattern co-occurrences