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Simply possessing valuable resources and capabilities may not be enough. The next question asks: How rare are valuable resources and capabilities? At best, valuable but common resources and capabilities will lead to competitive parity but not to an advantage.Only valuable and rare resources and capabilities have the potential to provide some temporary competitive advantage. IBM earns $1 billion a year from its IP portfolio-up from a mere five patents in 1990. However there is always a danger that their licensees may use the technology for purposes other than those originally intended. Although blatant patent information is illegal, smart reverse engineering, by inventing "around" a given patent is legal.