CONSORTIUMS IS A LATIN WORD MEANING PARTNERSHIP AGREEMENT AND DERIVES FROM CONSORS WHICH MEANS PARTNER

1. Consortiums
Prepared By
Adv. Sruthi Das BBA, LL.B, [Hons], LL.M [ITCL]

2. Consortium
Consortium is a Latin word, meaning ‘partnership,
agreement and derives from “consors” which means
‘partner’

3. What is Consortium
A consortium is an association of two or more
individuals, companies, organizations (or any
combination of these entities) with the objective of
participating in a common activity or pooling their
resources for achieving a common goal.

4. Who all can take part in an Association
• Academia
• Civil society
• Joint venture company
• Private industries
• Government
• Funders, Business Professional and Trade Association

5. Consortium
• They mainly work together to achieving a common objective
• Entities that participate in a consortium pool resources but are
otherwise only responsible for the obligations that are set out in
the consortium's agreement.
• Every entity that is under the consortium, therefore, remains
independent with regard to their normal business operations and
has no say over another member's operations that are not related
to the consortium

6. Consortiums
Consortiums are often found in the Non-Profit Sector & For-profit ,
Example, For Non-Profit Sector is Educational Institutions.
Educational Consortiums often pool resources such as libraries,
research activities, and professors and share them throughout the
members of the group to benefit their students. Several groups of
North American colleges and universities operate as consortiums.

7. Eg; for non-profit sector
• For example, the Five College Consortium in Massachusetts includes
the University of Massachusetts Amherst, Mount Holyoke College,
Hampshire College, Smith College, and Amherst College as members.
Students attending any of those institutions can attend classes at any
other partnered school for credit at no extra cost. Such educational
consortiums involve partnerships between institutions that are close to
one another. Other college consortia include The Quaker Consortium,
The Claremont Colleges, and the Big Ten Academic Alliance.

8. Consortiums are common among educational institutions that pool
resources so that students can benefit from a broader range of
assets
• Examples of For-Profit Consortiums are Airbus Industries GIE,
composed of the companies British Aerospace, Aerospatiale,
Constructions' Aeronautics SA, and Hulu, composed of Comcast,
Time Warner, the Walt Disney Company, and 21st Century Fox.

9. For-Profit Businesses
Corporate, For-Profit Consortiums also exist, but they are
less prevalent.One of the most famous for-profit
consortiums is the airline manufacturer Airbus Industries'
GIE. European aerospace manufacturers collaborate
within the consortium to produce and sell commercial
aircraft.

10. Advantages of consortium
• Ease of formation
• Flexibility
• Ease of termination
• Tax transparency
• Confidentiality
• Costs

11. Disadvantages
• Liability
• External relationship and funding
• Lack of permanent structure

12. • Illustrating the complexity of such an arrangement, the four partner
companies in Airbus (British Aerospace, Aérospa tail, Constructions
Aeronautics SA, and DASA) were simultaneously subcontractors to and
shareholders of the consortium. This arrangement resulted in some conflicts
of interest and inefficiencies as well as the eventual shift to Airbus SAS in
2001, which saw a consolidation of the original consortium members and a
reduction in overheads.
• In the United States, the video streaming service Hulu is a consortium of
big media companies including Comcast, Time Warner, the Walt Disney
Company, and 21st Century Fox.

13. Consortiums and government
Governments and private enterprises often collaborate
to formulate standards for manufacturing, food production,
product compatibility, consumer safety, and more. In such
collaborations, a government leverages its buying power as a
consumer to create standards.

14. • Countries that develop standards have a competitive advantage
over those that do not, and countries and industries that agree to
a worldwide standard are often leaders in International trade. The
creation of standards can lead to potential abuse
and antitrust concerns, however. In the United States, the legal
groundwork for collaborations and consortiums is found in the
Department of Justice and Federal Trade Commission's Antitrust
Guidelines for Collaborations Among Competitors

15. Thank you