Double Bind, either large members leave or are constrained and can’t innovate

Furthermore, such pools can distort the equilibrium of royalties payable to certain licensors (particularly those holding essential patents), if such distribution is a dependent variable of the aver-all population of patents present in a pool. Members holding large amounts of substitute patents are likely to shift such equilibrium to their side and internalise higher and undue benefits to the detriment of the other members holding essential patents. In the end, the owners of essential patents will likely exit such pools due to their respective imbalanced and unfair royalty-sharing scheme. The owners of essential patents, who elect to remain in such pools are likely to relax their expenditures in new technology development and dissemination initiatives because the conventionally pursued and expected payoffs will be prone to distortions, likely negligible and insufficient to sustain their innovation efforts.