China’s Guidelines for the Establishment and Operation of Patent Pools
Published 2 June 2025
Sarah Xuan
To enhance the standardization and systemization of patent pools in China, the China National Intellectual Property Administration (CNIPA), in collaboration with the Ministry of Science and Technology and the Ministry of Industry and Information Technology, has formulated the Guidelines for the Establishment and Operation of Patent Pools (hereinafter referred to as the “Guidelines”), which were officially released on May 13, 2025. This article provides an in-depth interpretation of the background, key content, and significance of the Guidelines to help relevant enterprises understand the role of this policy document in the development of China’s intellectual property system.
I. What is a Patent Pool? Why Establish One?
A “patent pool” refers to an intellectual property operation model in which two or more patent holders, through an agreement, collectively authorize patents in a specific technical field to a third-party entity or a designated representative for unified management and operation. This managing body is responsible for offering one-stop licensing, implementing cross-licensing, and providing related services externally. In essence, this approach “bundles scattered patents into a unified platform,” enabling licensees to obtain access to an entire package of technologies in one transaction.
Generally, the value of patent pools is reflected in the following aspects: 1. Reducing licensing transaction costs: Compared to negotiating individual licenses one by one, patent pools offer one-stop licensing services, significantly lowering negotiation and administrative expenses;2. Promoting rapid technology application and industrialization: Through centralized licensing, enterprises can access core technologies more efficiently, accelerating product development and market entry, and facilitating the transformation of innovation achievements into productive forces;3. Optimizing the industrial ecosystem: Unified management avoids redundant licensing, litigation risks, and market barriers caused by “patent thickets”, enhances enterprises’ compliance awareness, and fosters a fair competition environment;4. Driving the formation of new quality productive forces: By efficiently integrating innovative resources, patent pools promote the large-scale application of technologies and support the optimization and upgrading of industrial structures.
At present, patent pools have been successfully implemented in technology-intensive industries such as mobile communications, video encoding, and biomedicine, playing a unique role in advancing standards development, technology dissemination, and industry collaboration.
II. Background of the Guidelines
With the deep implementation of China’s innovation-driven development strategy, the number of patents has grown rapidly, yet challenges remain in patent utilization and value realization. Problems such as patent fragmentation, difficulty in licensing, and high transaction costs hinder the broad application of technological achievements. In addition, some patent pools suffer from insufficient governance capacity and elevated legal risks due to the lack of unified standards.
The Guidelines were introduced in response to these practical issues. Formulated by CNIPA, the Guidelines aim to guide the formation and management of patent pools through institutional frameworks, improve operational efficiency and legal compliance, and provide system-level safeguards for the innovation of patent operation models in China. The Guidelines not only address the urgent need for coordinated patent mechanisms within the industry but also align with the national strategy to promote the transformation of scientific and technological achievements and the development of new quality productive forces.
III. Core Content of the Guidelines
1. Process for Establishing a Patent PoolChapter Two of the Guidelines systematically regulates the establishment of patent pools, emphasizing that a patent pool is not a simple “collection of resources” but a carefully designed IP operation platform aligned with commercial objectives and governance structures. The establishment process involves four main stages: 1) Defining Fundamental Positioning Patent pool construction should be based on industrial technological development and market demand, defining its functional orientation. For instance, whether the pool will serve standard-essential patent (SEP) licensing, target a specific industry chain, or support cross-industry integration; whether the business model involves royalty-based licensing, licensing matchmaking, or a combination of patent operation and financial services. This positioning directly influences the framework of subsequent management mechanisms. 2) Determining the Operating and Management Entity A patent pool must have a capable third-party or member institution as its operating and managing body. Such an institution must possess the following capabilities:a. Patent evaluation and resource integration;b. Industry interfacing and commercial negotiation;c. Risk identification and compliance management;d. Benefit coordination and communication.This means that patent pool operators must have cross-disciplinary expertise in both technology and law, as well as a mindset for market-oriented operation. 3) Establishing Governance Rules A legally binding organizational charter must be established, including but not limited to: a. The purpose and basic principles of the patent pool;b. Mechanisms for member admission and withdrawal;c. Responsibilities and powers of the operating body;d. Revenue distribution rules;e. Risk management measures (e.g., obsolescence due to technological iteration, market exit strategies);f. Dispute resolution mechanisms (including mediation, arbitration, and litigation procedures).Such institutional design helps lower internal management costs and enhances legal certainty. 4) Screening of Patents for Pool Entry to Ensure Quality To ensure the technical coverage of the pool is effective and legally stable, the following entry procedures must be followed: a. Establish Evaluation Criteria: The operating entity must set fair and open entry thresholds, clarifying evaluation dimensions such as patent stability, scope of technical coverage, and market applicability;b. Application and Evaluation: Patent holders must submit detailed patent information. For utility models and design patents, a patent evaluation report may also be required;c. Expert Review: The operator shall organize expert evaluations or commission third-party assessment bodies to review the patent’s technical effectiveness and licensing feasibility;d. Signing of Pooling Agreements: This step defines the list of pooled patents, licensing terms, revenue sharing, confidentiality obligations, and exit mechanisms, thereby contractualizing rights and obligations.This comprehensive process ensures a solid foundation for the pool’s operation and reduces potential future legal disputes.
2. Operational Management Mechanisms Chapter Three of the Guidelines establishes five key operational mechanisms for the day-to-day functioning of patent pools: 1) Establishing a Licensing Fee MechanismThe Guidelines require that external licensing must follow a transparent, fair, and industry-acceptable pricing system. Pricing should consider: a. Quantity and technical value of pooled patents;b. The contribution of patents to product functionality;c. Average profit margins and market prices in the relevant industry;d. Whether the technology is in its growth or maturity phase;e. Price sensitivity of potential licensees;f. Judicial precedents as reference. Furthermore, the Guidelines stress that sufficient communication and negotiation should be conducted with potential licensees to avoid “technological monopolies” or “price-gouging,” thereby safeguarding market fairness. 2) Constructing a Revenue Distribution Mechanism To incentivize the participation of high-quality patent holders, the Guidelines call for the creation of a reasonable benefit-sharing system, including: a. Management fees may be extracted from licensing revenue by the operating entity;b. Revenue distribution among patent holders should be based on factors such as number of patents, technical contribution, and licensing scope;c. “Weighted algorithms” may be introduced to account for varying patent values within the same field;d. Incentive mechanisms are encouraged, such as awarding extra shares to core innovation contributors. The principle of the mechanisms is that distribution based on contribution, implemented through agreements, thereby minimizing operational disputes over interests. 3) Enhancing Flexible and Value-Added ServicesPatent pools should not be mere “warehouses of patents,” but comprehensive service platforms. The Guidelines encourage operators to: a. Assist in overseas litigation and licensing negotiations;b. Provide compliance risk assessments for patents;c. Organize industry chain technology matchmaking events;d. Offer public or semi-public IP training programs;e. Participate in policy initiatives for the transformation of scientific and technological achievements. These services enhance the competitiveness of the operating entity and increase the industrial relevance of the patent pool. 4) Promoting Moderate Transparency in Information Disclosure For standard-essential patent pools, the Guidelines specifically require timely disclosure of claims charts and essentiality evaluation results to protect the licensee’s right to information and negotiation basis. Other pools should, under the principle of “reasonable demand,” appropriately disclose the list of pooled patents, pricing basis, and governance rules. 5) Establishing Internal Communication Mechanisms The Guidelines specify rules for internal decision-making among pool members, including the setup of regular meeting systems, voting procedures, and supervisory channels, to ensure the operating entity aligns with the collective interests of all members.
3. Safeguard Measures Chapter 4 of the Guidelines introduces four pillars to ensure the normative development of patent pools. Notably, Article 15 sets out mechanisms for compliance review and legal oversight, including: 1) Patent pools must not violate the Anti-Monopoly Law or the Anti-Monopoly Guidelines in the Field of Intellectual Property;2) Patent pools must not be used to restrict competition, inflate licensing fees, or exclude potential competitors;3) Operators are encouraged to proactively report their operational plans to anti-monopoly enforcement authorities and accept compliance guidance;4) Patent pools must avoid practices such as “technology coercion” or “discriminatory licensing,” and must ensure fair access to licenses for all market entities. These restrictions establish clear legal boundaries for sustainable patent pool operations, ensuring they serve industry development without crossing legal lines.
Conclusion
A patent pool is not merely a “collection of technologies,” but a critical tool that marks the maturation of the intellectual property system and the deepening of industrial collaboration. The release of the Guidelines signifies a substantial step toward institutionalized and standardized governance of patent coordination and industry services in China.As a policy document integrating technology, law, system design, and industrial application, the Guidelines not only address real challenges in current patent operations but also usher in a new phase of comprehensive regulation and institutional support for China’s patent pool system. Its benefits include resolving patent fragmentation, easing licensing difficulties, enabling the real-world application of technological achievements, building a fair and orderly licensing ecosystem conducive to core innovation, mitigating anti-competitive risks, and empowering Chinese enterprises to participate in international technical negotiations and standard-setting with institutional tools and operational models. The implementation of the patent pool system will be continuously refined through practice. In this process, patent pools will evolve into key bridges that connect innovation with markets, and technologies with industries.
I. What is a Patent Pool? Why Establish One?
A “patent pool” refers to an intellectual property operation model in which two or more patent holders, through an agreement, collectively authorize patents in a specific technical field to a third-party entity or a designated representative for unified management and operation. This managing body is responsible for offering one-stop licensing, implementing cross-licensing, and providing related services externally. In essence, this approach “bundles scattered patents into a unified platform,” enabling licensees to obtain access to an entire package of technologies in one transaction.
Generally, the value of patent pools is reflected in the following aspects: 1. Reducing licensing transaction costs: Compared to negotiating individual licenses one by one, patent pools offer one-stop licensing services, significantly lowering negotiation and administrative expenses;2. Promoting rapid technology application and industrialization: Through centralized licensing, enterprises can access core technologies more efficiently, accelerating product development and market entry, and facilitating the transformation of innovation achievements into productive forces;3. Optimizing the industrial ecosystem: Unified management avoids redundant licensing, litigation risks, and market barriers caused by “patent thickets”, enhances enterprises’ compliance awareness, and fosters a fair competition environment;4. Driving the formation of new quality productive forces: By efficiently integrating innovative resources, patent pools promote the large-scale application of technologies and support the optimization and upgrading of industrial structures.
At present, patent pools have been successfully implemented in technology-intensive industries such as mobile communications, video encoding, and biomedicine, playing a unique role in advancing standards development, technology dissemination, and industry collaboration.
II. Background of the Guidelines
With the deep implementation of China’s innovation-driven development strategy, the number of patents has grown rapidly, yet challenges remain in patent utilization and value realization. Problems such as patent fragmentation, difficulty in licensing, and high transaction costs hinder the broad application of technological achievements. In addition, some patent pools suffer from insufficient governance capacity and elevated legal risks due to the lack of unified standards.
The Guidelines were introduced in response to these practical issues. Formulated by CNIPA, the Guidelines aim to guide the formation and management of patent pools through institutional frameworks, improve operational efficiency and legal compliance, and provide system-level safeguards for the innovation of patent operation models in China. The Guidelines not only address the urgent need for coordinated patent mechanisms within the industry but also align with the national strategy to promote the transformation of scientific and technological achievements and the development of new quality productive forces.
III. Core Content of the Guidelines
1. Process for Establishing a Patent PoolChapter Two of the Guidelines systematically regulates the establishment of patent pools, emphasizing that a patent pool is not a simple “collection of resources” but a carefully designed IP operation platform aligned with commercial objectives and governance structures. The establishment process involves four main stages: 1) Defining Fundamental Positioning Patent pool construction should be based on industrial technological development and market demand, defining its functional orientation. For instance, whether the pool will serve standard-essential patent (SEP) licensing, target a specific industry chain, or support cross-industry integration; whether the business model involves royalty-based licensing, licensing matchmaking, or a combination of patent operation and financial services. This positioning directly influences the framework of subsequent management mechanisms. 2) Determining the Operating and Management Entity A patent pool must have a capable third-party or member institution as its operating and managing body. Such an institution must possess the following capabilities:a. Patent evaluation and resource integration;b. Industry interfacing and commercial negotiation;c. Risk identification and compliance management;d. Benefit coordination and communication.This means that patent pool operators must have cross-disciplinary expertise in both technology and law, as well as a mindset for market-oriented operation. 3) Establishing Governance Rules A legally binding organizational charter must be established, including but not limited to: a. The purpose and basic principles of the patent pool;b. Mechanisms for member admission and withdrawal;c. Responsibilities and powers of the operating body;d. Revenue distribution rules;e. Risk management measures (e.g., obsolescence due to technological iteration, market exit strategies);f. Dispute resolution mechanisms (including mediation, arbitration, and litigation procedures).Such institutional design helps lower internal management costs and enhances legal certainty. 4) Screening of Patents for Pool Entry to Ensure Quality To ensure the technical coverage of the pool is effective and legally stable, the following entry procedures must be followed: a. Establish Evaluation Criteria: The operating entity must set fair and open entry thresholds, clarifying evaluation dimensions such as patent stability, scope of technical coverage, and market applicability;b. Application and Evaluation: Patent holders must submit detailed patent information. For utility models and design patents, a patent evaluation report may also be required;c. Expert Review: The operator shall organize expert evaluations or commission third-party assessment bodies to review the patent’s technical effectiveness and licensing feasibility;d. Signing of Pooling Agreements: This step defines the list of pooled patents, licensing terms, revenue sharing, confidentiality obligations, and exit mechanisms, thereby contractualizing rights and obligations.This comprehensive process ensures a solid foundation for the pool’s operation and reduces potential future legal disputes.
2. Operational Management Mechanisms Chapter Three of the Guidelines establishes five key operational mechanisms for the day-to-day functioning of patent pools: 1) Establishing a Licensing Fee MechanismThe Guidelines require that external licensing must follow a transparent, fair, and industry-acceptable pricing system. Pricing should consider: a. Quantity and technical value of pooled patents;b. The contribution of patents to product functionality;c. Average profit margins and market prices in the relevant industry;d. Whether the technology is in its growth or maturity phase;e. Price sensitivity of potential licensees;f. Judicial precedents as reference. Furthermore, the Guidelines stress that sufficient communication and negotiation should be conducted with potential licensees to avoid “technological monopolies” or “price-gouging,” thereby safeguarding market fairness. 2) Constructing a Revenue Distribution Mechanism To incentivize the participation of high-quality patent holders, the Guidelines call for the creation of a reasonable benefit-sharing system, including: a. Management fees may be extracted from licensing revenue by the operating entity;b. Revenue distribution among patent holders should be based on factors such as number of patents, technical contribution, and licensing scope;c. “Weighted algorithms” may be introduced to account for varying patent values within the same field;d. Incentive mechanisms are encouraged, such as awarding extra shares to core innovation contributors. The principle of the mechanisms is that distribution based on contribution, implemented through agreements, thereby minimizing operational disputes over interests. 3) Enhancing Flexible and Value-Added ServicesPatent pools should not be mere “warehouses of patents,” but comprehensive service platforms. The Guidelines encourage operators to: a. Assist in overseas litigation and licensing negotiations;b. Provide compliance risk assessments for patents;c. Organize industry chain technology matchmaking events;d. Offer public or semi-public IP training programs;e. Participate in policy initiatives for the transformation of scientific and technological achievements. These services enhance the competitiveness of the operating entity and increase the industrial relevance of the patent pool. 4) Promoting Moderate Transparency in Information Disclosure For standard-essential patent pools, the Guidelines specifically require timely disclosure of claims charts and essentiality evaluation results to protect the licensee’s right to information and negotiation basis. Other pools should, under the principle of “reasonable demand,” appropriately disclose the list of pooled patents, pricing basis, and governance rules. 5) Establishing Internal Communication Mechanisms The Guidelines specify rules for internal decision-making among pool members, including the setup of regular meeting systems, voting procedures, and supervisory channels, to ensure the operating entity aligns with the collective interests of all members.
3. Safeguard Measures Chapter 4 of the Guidelines introduces four pillars to ensure the normative development of patent pools. Notably, Article 15 sets out mechanisms for compliance review and legal oversight, including: 1) Patent pools must not violate the Anti-Monopoly Law or the Anti-Monopoly Guidelines in the Field of Intellectual Property;2) Patent pools must not be used to restrict competition, inflate licensing fees, or exclude potential competitors;3) Operators are encouraged to proactively report their operational plans to anti-monopoly enforcement authorities and accept compliance guidance;4) Patent pools must avoid practices such as “technology coercion” or “discriminatory licensing,” and must ensure fair access to licenses for all market entities. These restrictions establish clear legal boundaries for sustainable patent pool operations, ensuring they serve industry development without crossing legal lines.
Conclusion
A patent pool is not merely a “collection of technologies,” but a critical tool that marks the maturation of the intellectual property system and the deepening of industrial collaboration. The release of the Guidelines signifies a substantial step toward institutionalized and standardized governance of patent coordination and industry services in China.As a policy document integrating technology, law, system design, and industrial application, the Guidelines not only address real challenges in current patent operations but also usher in a new phase of comprehensive regulation and institutional support for China’s patent pool system. Its benefits include resolving patent fragmentation, easing licensing difficulties, enabling the real-world application of technological achievements, building a fair and orderly licensing ecosystem conducive to core innovation, mitigating anti-competitive risks, and empowering Chinese enterprises to participate in international technical negotiations and standard-setting with institutional tools and operational models. The implementation of the patent pool system will be continuously refined through practice. In this process, patent pools will evolve into key bridges that connect innovation with markets, and technologies with industries.