Changes

Patent pools are agreements between "two or more patent owners to license one or more of their patents to one another or to third parties." [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)] Generally, patent pools cover mature and complex technologies that require complementary patents to develop compatible products and services. [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)]. More recently, patent pools have become standardized by the Department of Justice, legally recognized only if (DOJ) has taken steps to standardize patent pools in order to prevent violations of antitrust laws. The DOJ finds patent pools with the following four criteria are metcharacteristics permissible:

# Substitute products may still be developed by parties included in the licensing agreement .# Patent pool has an established expiration date.# Pricing in downstream production cannot be affected by or discussed by members of the patent pool. [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf].

The creation of patent pools mainly benefits the owners of complementary or essential patents. Complementary patents cover multiple technologies protected by separate patents required for the development of a specific new product, and therefore, necessitate shared licensing [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)]. 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)]. 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)]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 the technology at a lower cost and more efficiently.

Constructive uses A recent example of constructive use of patent pools include "new combat aircraft during World War I," advances in radio frequency identification technology, and is the Eco-Patent Commons created by the World Business Council for Sustainable Development. The Eco-Patent Commons eliminates royalties for a number of patents to be used for eco-friendly innovation and pools patents that have potential for sustainable design applications [http://www.theglobalipcenter.com/sites/default/files/reports/documents/Prizes__Patent_Pools.pdf].