For most Internet companies, especially those banking on web 2.0 strategies, intellectual property doesn't have the kind of value it once did. It still has value -- lots of it -- but it's a different kind of value.

Fred Wilson explains:

The Web is a Platform and you must build on top of it and you must be open and you must not try to lock people in. If you do, you are eventually going to regret it.

Let's take a look at how this strategy could be applied:

Let's say you are a technology company that makes content management systems (CMS). Don't try to make money by keeping your technology closed and proprietary. Instead, open it up, and give it away for free. This is what will happen:

1. Webmasters who want a good, free CMS will come to you.
2. Technology developers who want to build applications on top of your CMS, or who want to customize it for their various needs, will also come to you.
3. Build your company so that it creates value by connecting these parts: connect webmasters who are willing to pay technology developers for customization.
4. Invite others to come in and offer consultation and education in how to use your CMS.
5. Allow hosting companies who want to offer your CMS to promote their services on your platform.
6. As the market grows, designers who specialize in designing stylesheets and graphics for your CMS will have an opportunity as well.

See what's happening? Your business is not about intellectual property; it's about connecting people. It's about networking, which is what web 2.0 is about. Come to think of it, it's what the whole web is about.

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