ABSTRACT: Forming, Funding, and Operating Standard-Setting Consortia

A. Updegrove

7/14/2021
(Original Publish Date: December 1993)

It is pointed out that the role of de facto standard setting organizations is relevant and important to true de jure standard setting organizations such as ASC X3 and IEEE. On the one hand, as a practical matter, a de jure organization may opt not to develop a competing standard, if it is satisfied that the de facto organization is providing a useful standard. As a result, a de factor standard setting organization is effectively permitted to control an important area of technology. On the other hand, the endorsement or incorporation by de facto bodies of de jure standards augments the effectiveness of the latter standards. For these reasons, as well as the insights that these new consortia provide into the high stakes wars that have been fought in the high technology industry in recent years, it is interesting to look back today to reflect on what these entities set out to achieve, and to what degree they were successful. In the course of doing so, the author offers some observations on how (and when) consortia of various types are best formed and focuses on the structural and legal factors which should be addressed in structuring and operating a successful consortium.