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Differentiated Standards and Patent Pools

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  • Aaron Schiff
  • Reiko Aoki

Abstract

We consider patent pool formation by owners of essential patents for differentiated standards that may be complements or substitutes in use. Pooling improves coordination in terms of royalty setting within a standard but provokes a strategic response from licensors in the competing standard. We characterise the incentives to form and defect from pools within standards and show how pool formation and stability depend on competition between standards. We also examine strategic patent pool formation by consortium standards and show that policies promoting compatibility of standards may increase or decrease welfare depending on the effects on the incentives to form pools.

Suggested Citation

  • Aaron Schiff & Reiko Aoki, 2014. "Differentiated Standards and Patent Pools," Journal of Industrial Economics, Wiley Blackwell, vol. 62(2), pages 376-376, June.
    • Handle: RePEc:bla:jindec:v:62:y:2014:i:2:p:376-376
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    File URL: http://hdl.handle.net/10.1111/joie.12051
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    Cited by:

    1. Ishihara, Akifumi & Yanagawa, Noriyuki, 2018. "Dark sides of patent pools with independent licensing," International Journal of Industrial Organization, Elsevier, vol. 57(C), pages 1-34.

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