What could possibly connect the leading athletic products supplier in the world with the largest consumer electronics retailer in United States? A unique initiative called GreenXchange has done just that.

Nike, Best Buy, and a small group of other companies have partnered with Creative Commons to create GreenXchange, a program that aims to assist companies to share intellectual property for green product design, packaging, manufacturing, and other environmentally friendly applications.

Does that mean Nike is starting to “share” proprietary product innovation information with its many competitors? Well, not exactly.

Product innovation is often something that differentiates a brand from others. A company would usually want to protect its innovation through patents in order to build its brand equity and prevent competitors from taking its market share. Yet, such behavior also prevents non-competitors from building on existing green inventions. GreenXchange enables member companies to share their green innovations without endangering their brands' differentiation.

For example, Nike might choose to make its shoe airbag patent available to all GreenXchange member companies if it thinks the technology is not an essential element of their competitive advantage. On the other hand, if the airbag technology is a core competitive advantage, Nike can only make the license available to non-competitors and charge a standard fee. However, it is a requirement of GreenXchange that member companies allow their patent portfolio to be used in academic research.

Apart from Nike and Best Buy, other companies that have shown interest include American office furniture manufacturer Herman Miller, major British retailer Marks & Spencer, global consumer chemicals manufacturer SC Johnson, and worldwide Internet services provider Yahoo!.

As the green trend continues over the years to come, brands participating in the GreenXchange initiative can build their reputation as green and socially conscious by sharing innovation with the public. This will build the brand’s esteem and contribute to their overall brand equity.