Standards, Innovation Incentives, And The Formation Of Patent Pools
Technological standards give rise to a complements problem that affects pricing and innovation incentives of technology producers. In this paper the author discusses how patent pools can be used to solve these problems and what incentives patent holders have to form a patent pool. The author offers some suggestions how competition authorities can foster the formation of welfare increasing patent pools. Whenever high technology products of different firms interact with each other technological standards are required. These standards are based on patents that are often owned by different patent holders.