“If you want to go fast, go alone. If you want to go far, go together.” — African proverb
Many view intellectual property rights primarily as a defensive measure, something you use to protect your property. While this is one valid use of IP rights, it is certainly not the most valuable nor the most interesting. Indeed, this protectionist view is at the bottom level of IP sophistication in the Value Hierarchy framework described by authors Julie Davis and Suzanne Harrison in their book, “Edison in the Boardroom”. The framework is conceptualised in the form of a pyramid, that outlines five levels of sophistication in how companies manage their intellectual property (IP) assets.
If the IP lens of a business can be focused less on just protectionism and more to growth and opportunities, then the true power of IP can be realised. Some of the most powerful uses of IP come not from exclusion, but from collaboration – namely carefully designed partnerships where everyone gains something.
IP collaboration can take many forms: licensing, co-branding, joint ventures, shared R&D, or even collaborations between competitors. When done well, these partnerships are not compromises; they are multipliers.
Rivals as Partners
Consider Intel and Taiwan Semiconductor Manufacturing Company (TSMC). Once staunch competitors, they joined forces when Intel needed advanced manufacturing capacity. With a US$4 billion investment, Intel gained access to TSMC’s process IP, while TSMC secured a powerful client. This unlikely collaboration shows that even rivals can become partners when the prize is big enough.
Odd but Effective Bedfellows
Some collaborations succeed precisely because they pair unlikely players. GoPro and Red Bull are a great example. GoPro sells cameras and Red Bull sells energy drinks. These two players formed a partnership where GoPro became Red Bull’s exclusive imaging partner. The collaboration worked because both had similar brand aspirations around adrenaline-fuelled adventure which gained extended media reach through GoPro footage and Red Bull’s marketing.
Nike and Apple are another example. Their collaboration birthed the Nike+iPod, then the Apple Watch Nike edition, blending sportswear and technology into a fitness ecosystem worth billions.
Licensing at Scale
Other collaborations rely less on co-branding and more on licensing. ARM Holdings is a UK-based company that designs the architecture behind most of the world’s processors. It doesn’t manufacture chips; instead, it licenses its designs to hundreds of companies, powering almost every smartphone globally. Its licensing – only business model generates billions annually without ever owning a factory.
Qualcomm follows a similar path, licensing foundational wireless patents (5g technologies) across the industry. The company earns upwards of US$6–8 billion annually, a model so valuable that Apple ultimately settled a US$4.5 billion in 2019 dispute just to restore access.
IP as a Platform for Global Collaboration
Perhaps the most striking example of IP collaboration is BioNTech and Pfizer’s partnership to develop the COVID-19 vaccine. By combining BioNTech’s mRNA platform with Pfizer’s development and distribution expertise, the companies generated US$37 billion in 2021 revenue from Comirnaty.
More importantly, they demonstrated how IP collaboration can shape global health outcomes.
Collaboration – the Third Cog
So how does a business set itself up for collaboration? To address this, I describe Collaboration as the third cog in my book the Hidden Mechanics of IP.
It requires knowledge about the first cog – Competitive Edge. Effective collaboration depends on mutual benefit. By having a clear understanding of what differentiates your organisation and ensuring those assets are well protected – you have leverage in negotiations, regardless of your size.
The second cog of Competitive Intelligence includes activities such as conducting intellectual property searches, understanding markets, evaluating the strengths of competitors, and confirming freedom to operate without infringing on existing rights. These insights are essential for identifying potential partners who could offer real, strategic value.
Your proprietary technology, brand power, or operational know-how may be useful to another party. Identifying synergies between the parties is the start of working out what a collaboration will look like. Recognising your own competitive edge relative to a collaborator allows you to structure agreements that maximises synergies between the parties.
When these three cogs mesh, IP becomes more than a shield. It becomes a growth engine.
Final Thoughts
The best use of IP rights lies not only in protecting what you own, but in strategically working it. Collaboration is not about giving away your crown jewels; it is about choosing the right partners and creating bigger wins for everyone. Sometimes the most unlikely bedfellows produce the most powerful results.
About the author:
Kate, a former founding partner of James & Wells, is a registered patent attorney (in New Zealand and Australia), has degrees in physics and chemistry, and is internationally recognised as a leading IP strategist with particular experience in patent matters. She is also an educator in all matters IP and intangible asset related, author of The Hidden Mechanics of IP: Demystifying Intellectual Property and has extensive expertise in establishing and managing IP portfolios.
