55. The Structure, Function, and Operations of Intellectual Property Service Providers
A. Formation and Development (continued)
History and Startup Relationships
Few service providers develop as individual entities; most are offshoots of a founding organization, partners with a larger "parent" or "umbrella" association, collaborations with like-minded groups, or sponsored projects of a funding agency. These "founding relationships" vary widely in their form and structure. They may emerge as projects within a larger organization (such as Academic Press’s Image Directory) or as licensing subsidiaries of a professional group (such as the Harry Fox Agency, a rights licensing arm of the National Music Publishers’ Association). Many begin as projects funded by foundations (such as JSTOR, a journal storage and archiving project initially supported by the Mellon Foundation) or by a joint partnership between several organizations (such as the Authors Registry, an organization founded by the Authors Guild, the Dramatists Guild, the Association of Authors’ Representatives, and the American Society of Journalists and Authors). Others evolve out of earlier business endeavors, such as Master Series Illustrations, which is a spin-off of an advertising agency.
The circumstances underlying the creation and development of an intellectual property service provider, and its founding relationships with other groups, shed light on a provider’s operations and membership base. A parent or founding partner may impose on a service provider certain conditions that affect its structure and function. For example, organizations founded by membership associations frequently limit representation to their members. Privately held organizations may not be as forthcoming with rightsholders and users as publicly held agencies or collectives. The circumstances under which a given service provider was founded offer insights into organizational incentives and influences that may affect rightsholders and users.
The strength and duration of founding relationships is also important. Is the relationship temporary or long-term? Relationships between service providers and their founding agencies are often designed to be temporary: The founding group offers startup assistance for a finite time period with the understanding that the service provider must become independent thereafter. This is commonly the case with special projects sponsored by foundations. Short-term relationships can result in significant structural and organizational changes at the end of the relationship that can be disruptive to rightsholders and users. Identifying the duration and commitment of founding relationships can alert one to changes in the provider’s future directions.