Wednesday, September 5, 2007

Another standards war--this one with rules

In earlier posts, we reported that the standards war between Blu-Ray and HD DVD is turning into a quagmire, as neither format seems to be able to gain the upper-hand. The two seem to be bidding for the support of major film studios to win the war. But until a victor emerges, consumers are delaying purchases.

Standard Setting Organizations, or SSO's, can coordinate technology adoption decisions between producers and consumers, and avoid a standards quagmire. But when the standard involves patented technology, and when there are competing standards, the battleground shifts from the market to the SSO. MSFT and rival IBM are fighting within the Geneva-based International Organization for Standardization about whether the newest version of MSFT Office should be designated an "international standard." From the WSJ:
The balloting was contentious. Opponents said Microsoft packed national bodies by urging its allies to join standards committees from Italy to Kenya. In Italy, the standards committee swelled from a half-dozen members to 85 in a matter of months. Microsoft responds by saying IBM was stirring up opposition to Open XML.
MSFT has so far failed to convince the SSO. Rivals fear that MSFT's control of the Open XML format would keep them from developing competing office software.

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