ABSTRACT: Creating A Successful Consortium Part II

Andrew Updegrove, Partner, Gesmer Updegrove LLP

3/02/2008
(Original Publish Date: 1/2/2007)

In Part I of this article, I reviewed the key business concepts underlying the formation of a successful consortium to develop, promote and/or support standards. In this second and final installment, I will discuss the most important legal considerations to consider in creating and maintaining such organizations, including: issues presented by specific types of activities; common legal structures and the relative virtues and shortcomings of each; optimal jurisdictions for formation; antitrust laws and their implications for operations; tax exemption criteria; the advantages and disadvantages of seeking exemption as a public charity as compared to a trade association; how to evaluate the advisability of seeking that exemption; intellectual property rights policies and procedures; and issues associated with certification and branding.