Recent advances in the IoT and Cyber-Physical Systems (CPS) enabled the possibility to combine capillary services or even services from different domains, such as smart home, smart city, smart infrastructure, etc. Thus, it is possible now to talk about the collaborative IoT or collaborative CPS, where services are not isolated from each other, but collaboratively offer added value and should provide advanced mechanisms for conflict resolution. However, still more efforts are needed to explore the ways of how capillary services might be selected and combined in an automated or semi-automated way forming composed or collaborative services. This process includes various stages, such as identification of selection criteria, discovery, negotiation, etc., that need to be considered from the very beginning of the system’s design. For this reason, we propose an ontology that addresses issues related to various collaborative aspects of service composition. Moreover, we discuss the composition of services or coalition formation principles with advanced mechanisms for negotiation and conflict resolution considering, for instance, the access rights and ownership.