1. ICSR 1 Optimizing the Economic Consequences of International Standards on Chinese Trade Ken Krechmer, Fellow International Center for Standards Research e-mail: krechmer@csrstds.com web: http://www.csrstds.com

2. ICSR 2 Definitions Standard: Document, model, or concept Standardization: Process of creating, implementing, or using a standard

3. ICSR 3 Definition of a Technical Standard A Technical Standard codifies for a society the constraints upon one or more implementations. These implementations are then used to quantify an entity under examination for the purpose of information transfer within a society.

4. ICSR 4 The Beginnings of Standards DNA is a naturally occurring standard. A system of marks indicating numeric digits likely was the first technical standard. The Western term “standard” was first reported in 1138 AD

5. ICSR 5 Standards for Similarity and Compatibility Plug 1 Socket 1 Plug 2 Socket 2

6. ICSR 6 Communications Compatibility Transmitter Receiver Transmitter Transceiver Interface Protocol

7. ICSR 7 Taxonomy of Technical Standards AgrarianCommercialIndustrialLinearAdaptive Value Property CurrencyInvention System Concept System (private) (patents) (public (copyright, utilities) brands, patents) TechnologyCounting Measures,Powered Sequential Adaptive Monetary machines processes Processes Systems (railroad, (computers) telephone, utilities) Communi-BarterCommerceMechanizedElectronic Internet cations transport (telegraph, telephone) StandardsSymbolMeasurementSimilarity Compati-Adaptability bility Strata Historic Age Information

8. ICSR 8 Succession of Standards Standards ExamplesPurposeEffect 1. SymbolsNumber systemsDefine identity Create order or relationship 2. UnitsMetrology,MeasurementQuantify Monetary system abstractions 3. SimilarityCellular mobile and base, RepeatabilityMaintain ISO 9000, ISO 14000, sameness X.3 PAD 4. CompatibilityNuts & bolts, Group 3 InterworkingOne side facsimile, telephone compatible with modems, X.25 interface, the other cellular air interfaces 5. AdaptabilityAloha protocol, CSMA/CD, Allow variationNegotiate Modem handshakes, XML,differences SIP, fax T.30

9. ICSR 9 Technologies’ Effect on Communications Standards OSI Model Application Agreements Presentation Session Transport Network Data Link Physical Requirements Physical Media

10. ICSR 10 Communications System and its Bounds Transmitted data Transmitter bound Mutual Bound Receiver Bound Received data Mutual Information

11. ICSR 11 Adaptability Requires: Identification, Negotiation, and Selection Two basic forms: 1.Adaptability defined in the design phase. Example: The Internet. 2.Programmable communications system may be adapted at any time. Examples: agents and etiquettes.

12. ICSR 12 A Multimode System with One Etiquette TransmittersReceivers Etiquette A C E B D F A  B = S 1 > 0 C  D = S 2 = S 3 E  F = S 3 > S 1

13. ICSR 13 Insights Offered by Taxonomy of Standards Etiquettes support the use of new protocols. Government intervention is more desirable when new standards successions emerge. Patents are best applied to similarity. Patents in compatibility standards reduce societal good. Avoid patents in adaptability standards.