Few, if any, companies can hold all the pieces of R&D in their own hands,” he said. “The days of go-it-alone R&D labs are over.”...

Likewise, contrary to the “myth” that Microsoft uses patents to bludgeon competitors, Mr. Phelps, deputy general counsel for intellectual property, said the company is seeking to use intellectual property to form alliances....

Though licensing accounts for only .0025 percent of the company’s annual revenue, “as a vehicle for cooperation with other firms, it’s worth its weight in gold.”