Abstract:  The rationality of the patent system is directly related to the effectiveness of patent transformation, and it also affects the quality of industrial economic growth. A technological transformation, which is the conversion of patent to technological standards, is a new strategic conversion. In this path of design, it has the conflict of patent abuse, which is caused by the non-reasonable patent property right and the asymmetry of patent information. Although companies adopted the patent alliance strategy to deal with the conflict, there are many problems about the strategy, such as lack of clarity in the definition of property rights, reduced possibility of market innovation, lack of long-term stability mechanisms, possibility of new obstacles to technological progress, and lack of compatibility with group standard reforms. In general, it does not effectively promote the transformation of patents into technical standards. Because it cannot solve the act of private right of patent rights. Therefore, establishing a group patent system in which enterprises jointly own patent property rights, will break through internal monopolies and break through restriction that patents must be held by patent associations. It will combine relevant institutions in the upper and lower reaches of the industry and promote the flow of information among enterprises through joint property rights. It will form a new situation of patent sharing, patent joint research and development, and jointly promote the transformation of patents into technical standards. By building the model of patent cooperation by using the economic theories, which is the method to determine the necessity and feasibility of development of enterprise patents and distribution of the profits. The paper found it is helpful to increase the profit and public benefit of individual enterprises through the standard of the group for incorporation of patent rights, and it is easier to reduce the asymmetric loss of patent value information of standard users. At the same time, the paper found different companies have clearly the effects of joint research and development, common technical standards and product quality improvement after implementation of group common patents, because it reduces the cost of internal consumption. Therefore, the market increment has been generated, and public welfare has been increased through group patent co-ownership, which has reduced the public welfare losses caused by monopolies caused by patent pools.However, because of the quasi-public product attributes of group patents, if there is no binding cooperation agreement within the group, itwill be easy to cause disputes within the group that owns group patents due to the externality, which eventually leads to the inability of group patents to exist. Therefore, group patents should have the feasibility of establishing reasonable agreements to reduce externality. At the same time, it is a reasonable cooperation mechanism in itself by writing group patents into group standards. It helps to promote the production of products that match the value of patents by group members and avoids waste of patent value. Thus the experiment of this patent system has discovered a new path for patent results in China. Moreover, it supports the foundation of patent system, which improves the quality level for the development of innovation-driven economy.

Key words: technological transformation, group patent, standardization, institutional arrangement