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4.2 - Policies and Procedures of the Technical Committee. Private inurement is not often an issue, but it can arise where members contribute technology in exchange for royalties or license fees that the IRS deems excessive (typically in excess of an arm’s-length amount). Again, while management and license fees are not impermissible on their face, those fees must be carefully set to avoid being in excess of what would be paid to an unrelated third party for comparable services or property. Another context in which private inurement can arise is where a founding member provides management services in exchange for a management fee. Prior to creating such a document, the technical structure of the organization must be designed. In order to put an effective IPR Policy into action, commitments by members must be collected on standard forms at specified points in time during the standard setting process, and then an archive of these materials maintained on a perpetual basis. For an SSO, the companion to the IPR Policy is a detailed document setting forth all of the day by day rules of the technical process, such as notice and quorum requirements, meeting rules, chairperson duties, and so on.
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