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Nike and partners launch The GreenXchange

I mentioned in an earlier post that Davos can be a catalyst for great ideas, and one example is the GreenXchange conceived by Nike. This morning the company formally launched the Xchange at a CEO breakfast in Davos.

The venue was a conscripted hairdressing salon that was pressed into service by the Forum as a meeting space. We were like sardines. But the energy in the tiny room was high.

To recap: The Xchange is a Web-based marketplace where companies can collaborate and share intellectual property which can lead to new sustainability business models and innovation. Ten organizations have already signed on. The Xchange is the first step in a journey towards more sustainable innovation, and the more companies that get on board, the faster we'll all make progress. More info can be found at

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This idea of a patent commons came up at another session. Currently the planet has many commons, such as the ocean, air and space. Much of the Web is in the commons. It's time we added an additional area: know-how related to sustainability.

The benefit of placing intellectual property on GX is that it gives the IP owners the ability to choose the licensing approach they feel comfortable with - from research and attribution recognition to non-competitive use and simple fee structures.

In Wikinomics my co-author Anthony Williams and I argued that we're living in a world where new approaches to collaboration enable new business models that empower companies to create better value for consumers. We said companies need a portfolio of intellectual property - some that they own and protect, some that they licence and some that they freely share. The GreenXchange is all about achieving that.

Nike began this morning's announcement with a cool video that made it clear that sustainability is not an obligation, it's an opportunity. Companies can choose to be ahead of the curve or behind the times. The goal is to create an innovation community. No one is "giving away" their intellectual property; the exchange includes a licensing protocol.

"Nike is today committing to placing more than 400 of our patents on GX for research, demonstrating our belief that the best way to stimulate sustainable innovation is through open innovation," said Mark Parker, Nike president and chief executive. "Our hope is this will unleash new innovation to help solve current obstacles to sustainability issues."

Example: Possible cross-industry benefits of making available Nike's Environmentally Preferred Rubber. Used in Nike footwear the rubber contains 96 percent fewer toxins than the original formulation. By licensing the technology on GX it could be used in other companies' footwear, or it could hypothetically be used by Mountain Equipment Co-op for bicycle inner tubes. In this way, Mountain Equipment Co-op could bring a greener product to market more quickly and cheaply than it could on its own.

Parker explained that initially the company's lawyers opposed the Xchange. They felt intellectual property was always meant to be kept under wraps and guarded. But they've all come around to see the value of the Xchange, not only to the environment, but also bring competitive advantage to the company. When Nike's patents are put into the commons, any improvements made to the patents will be available to Nike.

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Parker said universities are a great source of intellectual property. What is needed - and what the Xchange provides - is a standard protocol whereby IP can bust out from the university and be helpful more broadly to business and society.

John Wilbanks, vice president for Science at Creative Commons, said, "There is so much duplication of effort and wasted resources when it comes to sustainability. We need to make it easier for individuals, companies, academia, and researchers to collaborate and share best practices."

I am pleased to say nGenera Corporation will be facilitating the Xchange innovation process by providing the technology that will support "private rooms", where patent holders and patent seekers can discuss prior usage, patent fees, patent restrictions, and other confidential details.

GX was built by a team of developers on's cloud computing platform, enabling the collaborative innovation at the heart of the GX mission. "The business of changing the world is something today's leading companies need to take an active role in, and we are proud to be a part of that effort," said Marc Benioff, chairman and CEO,

"Yahoo! is encouraged by the GreenXchange's commitment to accelerate the learning curve for energy efficiency, sustainable technology, and sustainable business practices, through open innovation," said David Dibble, executive vice president of service engineering, and operations, Yahoo! Inc. "The GreenXChange fosters cross-industry collaboration to increase the adoption of sustainable best practices, in a manner that's good for the planet and good for our individual businesses."

Don Tapscott, is the author of 13 books, Chairman of the think tank nGenera Insight and is an Adjunct Professor of the Rotman School of Management at the University of Toronto. Twitter: @dtapscott

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About the Author
Don Tapscott

Don Tapscott is adjunct professor at the Rotman School of Management. He is the author of 14 books, including Grown Up Digital: How the Net Generation is Changing your World and most recently (with Anthony D. Williams) MacroWikinomics: Rebooting Business and the World. More

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