The Consortium Standard and Patent Pools

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 asuccessful standard specification patent pool operation.