Definition
A patent pool is an agreement among several patent holders to license their related patents together as a package, often to implementers of a standard.
Why It Matters Legally
Patent pools simplify licensing for technologies that require many patents, such as industry standards, reducing transaction costs and litigation. They are common in telecommunications and media.
Example Use Case
Companies holding patents essential to a video codec form a patent pool so device makers can license all needed patents in one deal.
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Related Terms
Cross-License, Licensing, Standard Essential Patent, Royalty, License Agreement