The Consortium Standard and Patent Pools

Reiko Aoki, Institute of Economic Reserach, Hitotsubashi University and Department of Economics, University of Auckland, and Sadao Nagaoka, Institute of Innovation Research, Hitotsubashi University

1/01/2005
(Original Publish Date: 2004)

We examine patent pools in the context of a consortium standard. Although such pools of complementary technologies are approved by antitrust authorities, the actual implementation has proved to be problematic. We identify two possible obstacles: free riding and bargaining failure. We also examine the traditional RAND (reasonable and non-discriminatory) licensing condition. We suggest formation, licensing and rent distribution methods more conducive to a successful patent pool operation.