What are the reasons for the rise of modern patent pools?

The re-emergence of modern patent pools has a profound economic and technological background. It adapts to the new trend of scientific and technological development and the increasing strengthening of technical standards under global integration.

1) The patent obstacles caused by "patent thicket" need to be eliminated by patent pools. The complexity of modern technology is no longer what it used to be. The patents involved in a product are becoming more and more intensive, resulting in the so-called "patent thicket" phenomenon. "Patent thicket" has greatly increased the risk of obstacles between many patents, prompting patent holders to form patent pools to ensure the smooth implementation of patents.

2) The industrial division of labor is refined and the industrial chain is continuously lengthened, creating a patent pool. The division of labor is becoming more and more detailed, the industrial chain is continuously extending, the number of manufacturers gathered in a certain industry is far more than in the past, and the technical correlation between upstream and downstream enterprises is also getting higher and higher. In this case, without a patent pool, the transaction costs for many companies seeking patent licenses would be staggering, and the patent pool's one-stop package licensing approach is undoubtedly the most efficient option.

3) Industrial technology standardization has given rise to patent pools. In the context of global integration, and with the influence of the network effect of technical standards, the role and status of industrial technology standards have become increasingly prominent in recent years. Once a technical standard is established, the licensing issues for the large number of patents contained in the standard may become complicated and become a stumbling block to the promotion of the standard. At this time, the formation of a patent pool by relevant patent holders is the best way to solve this problem.

4) The shortening of the modern technology cycle has accelerated the formation of the patent pool. The development of modern technology is rapid, and the upgrading of technology is accelerating. If a technology cannot be industrialized quickly, it will soon become tomorrow's technology. Huanghua, not only cannot make a profit, but even the research and development costs cannot be recovered. However, the process of technology industrialization is often burdened by the time-consuming and laborious patent authorization process, and people have to use patent pools to quickly solve this problem.