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→Patent Pools
===Support===
'''Efficiency''': The creation of patent pools mainly benefits the owners of complementary or and essential patents. Essential patents are patents required for a product or process to meet a given sector's technical standards. Cross-licensing between companies in a patent pool facilitates building upon previous technologies and increases the efficiency of innovation by organizing complementary intellectual property assets under one contract [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)]. Mutually blocking patents often slow technological developments as neither party can make use of its technology without infringing on the other party's patent. By forming a patent pool, both parties can develop substitute technologies without risk of infringement.
'''Cost Reduction''': Companies can also reduce the amount spent on litigation by settling disputes with the creation of patent pools. This would benefit small- and medium-sized businesses that usually cannot afford the costs of expensive litigation. [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)] Transaction costs as well as royalties can also be lowered in a patent pool.
===Criticisms===
'''Elimination of Competition''': Opponents criticize patent pools for the potential of anti-competitive behavior and collusion, primarily with regards to substitute patents. Substitute or non-essential patents cover competing technologies that can be developed in parallel without risk of infringement [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf]. Patent pools formed between entities companies holding substitute patents eliminate competition in that particular technological sector, reinforcing the parallels drawn between patent pools and cartels . The [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)|World Intellectual Property Organization]refers to patent pools exhibiting this behavior as cartels. Patent Certain patent pools potentially create a way for companies have been found to share competitively competetitively sensitive information, such as marketing and pricing, marketing strategies, or and R&D information among its membersfindings." [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)] For example, R&D information and developments could be shared in grant-back provisions, a possible requirement in patent pool that companies share new or downstream technologies and innovations with members of the pool without additional fees.
'''Licensing Practices''': If a patent pool restricts its members from licensing its patents independently, it lowers the incentive to produce alternatives and inflates the costs of goods or technology for consumers. The Department of Justice and Federal Trade Commission state that patent pools may create barriers to entry for new firms since required restrictions on licensing may create "a barrier to entry if existing relationships make it harder for 'new firms to come in and overcome the patent thicket'." [http://www.justice.gov/sites/default/files/atr/legacy/2007/07/11/222655.pdf (DOJ)]Additionally,
'''Pricing''': Given agreements between patent holders to reduce royalties, there may be collusion to fix higher prices for consumers. Technology may become inaccessible to a large number of consumers, hurting the overall public good.
