Pools cause inflation and kills technology

In contrast, a pool comprised of pure substitute patents is very likely to offer limited technological choices to its own members and third parties. Such limitations are likewise capable of constraining innovation that generally relies on the supply of a variety of technologies. In a long run, it will likely lead to higher prices of, and constrain access to, standard products in downstream market as also noted by Gallini (2011). This is a negative consequence likely to arise from the scarcity of technologies alluded to early, which can have an opposite effect from that which might have otherwise occurred with a diverse supply of technologies. The latter generally help to lower the costs of production of standard products. From this standpoint, it would not be unseasonable to perceive pools loaded with substitute patents as a disguised stratagem that firms can use to control or fix the market prices, foreclose potential competitors and/or restrict downstream technology and knowledge spillover and licensing process.