Patent Pool Formation with Standard Essential Patents in Emerging Technologies

Abstract

This paper aims at identifying the characteristics and the trends of patent pooling especially on Standard Essential Patents (SEPs) to clarify the key factors that help to spur innovation while minimizing the risk of litigation. Now patent pools provide multiple patent owners' technologies into licensing, and they provide simplified and integrated technologies access across multiple sectors, especially in telecommunications and healthcare industries. This framework reduces the harm of fragmented patent ownership described as the "tragedy of the anti-commons" whereby fractured ownership can slow down innovation. There are still some drawbacks associated with patent pooling which can be named as follows: the most crucial one is associated with competition law. Questions like royalty stacking, over-declaration of patents as well as possible anti-competitive conducts should call for higher regulator control of the functioning of the patent pools in order not to distort the market. In this context, Standards Development Organizations (SDOS) play an important and defining role in setting up the necessary governance frameworks as societies ensure equal access to technological products and non-violation of competition law. In conclusion, this paper posits that with the right checks and balances in place, patent pools can act as potent incentives to innovation not only to individual players but also to markets, thus making it possible to promote fairness and competition in the technology market for the overall development of a healthy technological environment.