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The Consortium Standard and Patent Pools


Reiko Aoki and Sadao Nagaoka


May, 2004


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Abstract
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)licensingcondition. We suggest formation, licensing and rent distribution methods more conducive to a successful patent pool operation.
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Copyright (C) 2003 by Institute of Economic Research.All rights reserved.