Licensing MasterFormat?

As a 27-year member of CSI, a past Chair of both the CSI Board of Directors and the CSI Foundation Board of Trustees, a CSI Fellow, and a Distinguished Member, I have invested a great deal of personal equity in CSI, which, in turn, has helped me personally and professionally. I mention that to be transparent about any bias that may be perceived in what I am about to state.

As diligently as CSI has been trying to move forward into the 21st century to catch up with an increasingly fast-paced industry, there are people (members and non-members) who seem to want to drag us back to the mid- to late 20th century. As CSI standards are being integrated into more and more digital applications and platforms, CSI should and has every right to be compensated for the products it has produced and are used by the industry. Yes, these standards rely on essential volunteer input. But the operational support behind those volunteers, the editorial effort, and the costs of production and distributionwhether print or electronicare ever-increasing costs that must be covered.

A professional association cannot survive on membership dues alone. In fact, dues this past fiscal year accounted for 22% of operating revenue. Thus, CSI relies on publications, certification programs, events, sponsorships, and standards to generate non-dues revenue to cover the remaining 78%.

Purchasing paper-based products is becoming a thing of the past as people want immediate access to information, whether they are sitting at their desk at work, at the dining table at home, or at a meeting across the country (or even out of the country). The online CSI Dynamic Standards (CDS) provides immediate access to the most current version of all CSI standards. CSI is establishing the foundation of a standards development process to ensure consistency and continuity over time with wider public input. CSI standards development will become an ongoing process with more frequent updates like those you get with online software applications. Additionally, there will be greater interaction among the standards development task teams to ensure standards are coordinated. And just think of the possibilities if we view these standards as the foundation of an interoperable database rather than a static guidebook for the systems that are the standards.

In the past, CSI was lax in enforcing its intellectual property rights. In fact, over a decade ago, CSI came very close to losing its trademark protection for its standards because it failed to keep them up to date. To maintain control over its intellectual property, using online standards offers better protection than CSI had in the past. Bound books are shared, and PDFs are posted on company networks and the internet, where they can be easily searched and mined for data. Why should large design firms that generate millions of dollars in revenue be allowed to pay the same cost as the sole proprietor or independent specifier for using CSI standards? And why should it be expected that the work contributed by CSI members be made free in order that others profit from the contribution of members, to the long-term detriment of the association and the sustainability of the standards? The cost of a CDS subscription will be used to maintain the development process previously mentioned and to continuously improve the product.

Now, before you think I’m a compensated shill for CSI, I, too, have been reasonably critical of some things CSI has done. However, when I have done so, I have taken it to the people who can directly affect change or have the answers that substantiate why something was done. If there is one thing I have learned from my 23 years as an Air Force officer, it is to praise in public and criticize in private. In my opinion, airing grievances on public forums probably does more harm to an association than it does good. If you are a CSI member, I hope that concerns you as much as it does me. If you are not a CSI member, you may have benefited from properly licensed and paid for CSI’s products. But others of you have benefited from CSIs products and the work of its members without a financial or volunteer contribution, and, if you are one of these types of non-members, then you have no vested interest in the professional association, and the management and governance of the association are essentially none of your business.

Regarding CDS, I have pushed back on some aspects of the End Users License Agreement (EULA) and have been working behind the scenes with CSI and CIN to create a compromise that works for both CSI/CIN and the specifier. I assure you, they are fully aware of where specifiers stand and what their concerns are. Other specifiers and I have made those issues as clear as we can. If you have anything specific you want addressed, feel free to consider me your point of contact.

If you got this far, thank you for reading until the end. I love CSI, I love SCIP, I love AIA, I love CSC, and I love ICC. Each offers me something special and individual, for which I am grateful, and I am willing to show my gratitude by participating in any way I can, not only because it helps me but also because it helps the AECO industry.

Ron-

Thanks for your comments. This is the most comprehensive and informative response so far from official (or quasi-official?) CSI sources on some of the reasoning behind the new approach to MasterFormat Licensing. This may be the salvation for the Institute. We’ll see.

We’re still waiting for a CSI board member or our CEO to respond on the CSI website to our concerns about poor communication between management and membership, disillusionment of members, and a groundswell of dissatisfaction. There seems to be a dismissive attitude from the board members I have spoken to that these issues even exist. That may be why people feel like they are being ignored.

I agree with the military adage that it is best to praise in public and criticize in private. Perhaps if CSI had been publicly forthcoming with solid information about what has been over the last decade, it wouldn’t be necessary to post complaints on public forums. Private complaints can be ignored with little risk, but ignoring public comments only stirs up the fire. It’s better to answer even if the answers might be unpopular or uncomfortable, than to ignore.

CSI needs to do better, and I hope they do. I’m sure you understand that criticisms from members spring from as genuine and heartfelt a love for CSI as yours is.

I found Linked In page for the CSI Chief Executive Officer as an interesting read including the linked article which is a conversation with same: https://avplaybook.com/embrace-a-new-mindset-for-digital-value-creation-1f5ce8debcb6. Gives a glimpse of the mindset behind recent developments.

I find it hard to trust CSI leadership when the CEO announced at the Master Specifiers Retreat that CSI has 6000 members and 10000 CSI Connect members. This is in stark contrast to what was evident in the FY24 annual report. After MSR, I wrote to Mark Dorsey about his claim. According to the dues revenue in the annual report there were 3,655 members as of June 30, 2024. If 6,000 is true then that is a 64% increase in 19 months - an outstanding achievement. The trend has been a decline. If this growth was real why was it not front and center in CSI communications? If anyone should know how many members CSI has, it should be the CEO. Why did he feel compelled to exaggerate the numbers?

If CSI can establish an annual recurring revenue through licensing, do the members even matter. Are they simply an inconvenience requiring services the organization is no longer interested in providing?

Call me frustrated with the lack of transparency.

@Ron: Thanks for your comments. Having taught specifications and volunteered extensively with CSC, I share your deep passion for specs. Thats exactly why Im speaking out. While CSI absolutely deserves fair compensation for its IP, it must first clearly define (1) what that IP is and (2) ground its demands in existing law.

I usually prefer private discussions as well, but CSI chose to make this public. Given their ongoing litigation with Bibliotech and Zerodocs, is it fair to demand industry-wide licensing fees before the legal validity of those demands is even settled?

As a non-member, Ill leave CSIs internal transparency issues to its membership. My primary concern is CSI’s aggressive litigation tactics. CSI sued Zerodocs TWICE. The second time was after the company had already exited the spec-writing space. They sued me AFTER I engaged in good-faith negotiations and removed all Masterformat numbers and references to CSI and CSC from my website (even though I don’t admit it could have amounted to copyright infringement). If simply counting from 00 to 49 raises CSI’s ire, then the whole industry is in trouble.

I note that neither Zerodocs nor I are huge, powerful companies. We’re small, bootstrapped startups trying to innovate in our respective spaces. My decision to fight CSI is rooted in principle. I have been advised by several people, including my lawyers, to “simply pay up” and move on, but I chose to fight this because I believe CSI’s demands are unjust.

In my view, this isn’t about IP protection; its about market control. CSI wants a share of every transaction that occurs in the AECO space. That is simply not a tenable position.

Regarding books becoming obsolete: organizations like ASTM or NPFA have successfully built modern, controlled digital platforms (e.g., ASTM Compass) without slapping a “tax” on their entire industry.

Can our community collaborate on innovative platforms to deliver specs? Absolutely. But a heavy-handed industry tax is not the way forward. It will only stifle innovation and inflate prices for everyone.

In addition, as I noted in my article, if CSI loses its legal battles, it may expose itself to significant financial liabilities.

Posting this not in defense of CSI on this matter, but see this article for a conversation with Mark Dorsey, found on his LI page, that may shed some light on the mindset behind the topic of this thread: https://avplaybook.com/embrace-a-new-mindset-for-digital-value-creation-1f5ce8debcb6. His LI page is also worth a read for a little background.

Juste, thanks for your description of this as a tax on the industry. That’s what it seems like they’re trying to implement.

I’d love to know if CSI considered this alternative: instead of trying to force the entire industry to license any access whatsoever to the standards, create a product that people actually want and will voluntarily pay for?

This would be a far better approach, especially considering that it’s not yet clear that the numbers & titles are IP that can legally be sequestered.

Another problem is that the proposed financial benefits described on TCS are obvious fantasy and completely laughable. They make the entire effort look like a joke. Where did the supposed “reduced rework” values come from, anyway?

So how about this idea, @CSI (and everyone else reading this):

  1. Make the MF, UF, and OC numbers and titles freely available once users register and log in to CSI website. This will drive traffic to the website and CSI will have their contact information so it can market membership and other products.

  2. Create some advanced numbers-titles search features for CSI members as a benefit of membership.

  3. Create a product where full text and interoperability of MF, UF and OC are available for a fee, and SELL the product and have people buy it because it has value and solves a problem.

@Elias. That’s exactly it. For example, I have looked at the UL IQ Inspector. For now, it’s a free service, but if UL wanted to make that something users had to pay for, then I would absolutely drop some money to access it…it helps architects and spec writers in their daily workflows.

CSI has the opportunity to create something of value, they just need to think harder about what that is. Forcing the entire industry to swallow this new Dynamic Standards pill is only going to cause backlash.

To follow up on what Elias wrote: And sell the product at a REASONABLE price.

If this modern miracle of computer wizardry cost less than $100/year, I would think, “Oh, what the heck…” and probably just get the subscription myself. (If it were only $50/year, I definitely would!)

$2500 x 100 subscribers = $250,000
$100 x 2500 subscribers = $250,000
$50 x 5000 subscribers = $250,000

I used the “What’s My Number?” tool to look up numbers a few times a year. As a perk for being a CSI member it was nice. Now what am I supposed to do?

(I wonder if this was why I was unable to change my email address to my personal address last year? Hmmmm…)

Keep in mind our CEO thinks we need to “Develop Products Members Dont Know They Want.”

Dorsey’s management style: https://associationsnow.com/2021/09/listen-for-the-wheel-that-isnt-squeaking/

We’ll pay for things that actually make our jobs easier (looking at you, Perplexity!)

Speaking of Perplexity, what does CSI do if AI agents “accidentally” get trained on updated numbers and titles and give them away to anyone that asks for them?

Elias:

That is an issue not limited to just CSI. Also, it’s an issue with any type of AI, not just Perplexity. This is a growing concern for any producer of creative content working in the digital world. If someone somehow accesses the CSI standards content through AI and embeds it in a commercial application or platform, then yes, that would be a copyright violation.

For those following the censorship saga over on other channels:

The 1st Amendment prohibits Congress from abridging freedom of speech. The guarantee applies only to government actions, not to those of private enterprises. I acknowledge that CSI, as a private entity, has the right to censor speech on the community forum.

One could argue that management should actively moderate and suppress speech they determine is inappropriate for their discussion areas. Such suppression could be justified to:

       Preserve CSIs public image 
       Limit misinformation 
       Maintain order 
       Avoid conflict 
       Protect feelings 

It is within managements purview to set policy for how their website is controlled. That includes censoring speech they consider detrimental to the ends they are trying to achieve. The ironic thing about choosing to suppress speech is that the more dissent is suppressed the more it spreads.

Supreme Court Justice Louis Brandeis gave us this advice in his concurring opinion in Whitney v. California (1927): If there be time to expose through discussion the falsehood and fallacies, to avert the evil by the processes of education, the remedy to be applied is more speech, not enforced silence.

For those following the censorship saga on other channels:

The 1st Amendment prohibits Congress from abridging freedom of speech. The guarantee applies only to government actions, not to those of private enterprises. I acknowledge that CSI, as a private entity, has the right to censor speech on the community forum.

One could argue that management should actively moderate and suppress speech they determine is inappropriate for their discussion areas. Such suppression could be justified to:

       Preserve CSIs public image 
       Limit misinformation 
       Maintain order 
       Avoid conflict 
       Protect feelings 

It is within managements purview to set policy for how their website is controlled. That includes censoring speech they consider detrimental to the ends they are trying to achieve. The ironic thing about choosing to suppress speech is that the more dissent is suppressed the more it spreads.

Supreme Court Justice Louis Brandeis gave us this advice in his concurring opinion in Whitney v. California (1927): If there be time to expose through discussion the falsehood and fallacies, to avert the evil by the processes of education, the remedy to be applied is more speech, not enforced silence.

@Ron, keeping numbers and titles from AI is futile. There are plenty of internet sources - think about all the specs in electronic plan rooms and any project manual issued for public bid. Of course no project manual using the 2026 numbers and titles will ever be for public work.

There is a university owner that requires all documents to be in MASTERFORMAT 1995. There is an architect writing documents in MASTERFORMAT 2020 who uses AI to convert the 2020 document numbers, titles, and internal references and file names to 1995. CSI Dynamic Standards is a lookup only as I understand it and cannot automatically convert documents and internal references. CSI seems to be behind before the new product is launched.

@Ron: if CSI was serious about copyright infringement then it would go after all the AI companies. I can easily get ChatGPT or any other LLM to spit out a LOT of Masterformat numbers. That is why, at least to me, this thing is not about protecting IP. It’s about forcing everyone to use a software so they get a license to THAT software…then enforcing contract rights. Once a contract is signed, it’s no longer IP law that applies, it’s contract law. But…what do I know? I’m not a lawyer.

I thought it is time to analyze potential cash flow from Construction Specifications Institute #MasterForRent. Long post incoming please be patient.

My question to Grok: Im curious about the new attempt by CSI to charge for MasterFormat. They say that new costly licenses are required for architects, specifiers, contractors, product manufacturers, construction managers, and owners who use the system. Please make a conservative estimate of how many licenses would be required if all the identified industry entities were to participate.

Grok response edited for brevity: Adding these up conservatively (avoiding massive overlap and excluding tiny/solo operations unlikely to license at firm level):
Architects/specifiers: ~20,000
Contractors (GCs + broad): ~150,000 (mid-range conservative)
Construction managers: ~75,000 (mid-range)
Product manufacturers: ~15,000
Owners: ~7,500
Rough conservative total: ~250,000300,000 firm-level licenses if nearly all meaningfully participating entities complied.
This is deliberately low-endreal-world participation would likely be lower initially (due to pushback, exemptions for small firms, phased adoption, or many continuing legacy use without new licenses). The actual number could easily be half or less if CSIs intent focuses more on software integrators, large firms, and heavy commercial users rather than every small contractor or solo architect.

My next question: Please use this total number of licenses and whatever official pricing information is available to calculate total estimated income from the new standard.

Grok response edited for brevity: Conservative Revenue Estimate
Since exact tier distribution across all firms isnt public, well make a conservative, low-end calculation assuming heavy weighting toward smaller/lower-revenue firms (common in AEC, where many are under $5M revenue) and partial adoption (not 100% compliance due to pushback, small-firm exemptions, or legacy use).
Use the midpoint of our prior conservative license range:
275,000 licenses $600 average = $165 million annually.
275,000 $800 average = $220 million annually.
Even more conservative scenario (factoring in lower adoption, e.g., only 5060% of the 275,000 actually purchase due to controversy/small firms opting out, and sticking closer to the known low tiers):
Effective licenses: ~150,000175,000.
Average fee: ~$500$700 (heavier small-firm skew).
→ $75$120 million annually.

In the post Covid era, I have a very pessimistic view of any kind of 1st Amendment Discussion. It no longer exists in any meaningful way.

@Ron said, “If someone somehow accesses the CSI standards content through AI and embeds it in a commercial application or platform, then yes, that would be a copyright violation.”

We’re not talking about embedding them in a commercial application or platform.

We’re talking about using the latest and greatest MF numbers and titles in a project, which CSI asserts we will not be allowed to do unless we pay them for Dynamic Standards.

What will CSI do if on my next project I write a spec using the new Division 32 numbers without obtaining a license first?

@John CIN has two sales executives. If each one closes 25 licenses each day (one every 19 minutes) it will take 3000 days, or 12 years, to close the 150,000 (low-end) license estimate.

Perhaps the question is: what resources, expenses incurred, average license value, and sales velocity are required for CSI to achieve it’s own revenue and profitability goals? Since CIN is an independent entity, I am sure CSI members will never know.