The papiNet standard has been developed since 2000 by European and North-American paper suppliers and customers. It covers the segments publishing and graphical paper, fine paper, packaging as well as pulp. By Q1/2003, the ebXML-based messaging software EPC Messenger has been implemented at over 80 companies of the global paper supply chain.

The success of papiNet is due to its integrated standardisation approach covering

- document schemas (see www.papinet.org),

- business processes (industry-specific process and subset definitions have been developed particularly for publishing paper) and

- The EPC Messenger -- an ebXML-compliant messaging software.

These three parts have been developed in a harmonic way such that connection cost could be drastically reduced due to network effects.

The presentation will cover the following aspects:

1. Overview of papiNet business processes and transactions

2. The business model for the EPC Messenger (see further down)

3. Illustration of a typical set-up for the exchange of papiNet messages, based on a case study (Axel Springer Publishing from Germany introduced papiNet in December 2001 and could reduce connection effort for additional paper suppliers to a few days effort)

4. Current and future issues in papiNet standardisation

Another innovation lies in the license model between Ponton Consulting as the software vendor and papiNet users. A perpetual, global license has been granted to the EPC (Consorium of European Paper Suppliers), so that the software can be made available license-free to all companies involved in the paper supply chain. Instead, users contribute a support fee for technical services. This fee covers both technical support and software maintenance. The support model leverages network effects and becomes economically feasible with 50+ users, thus drastically reducing operating costs for each individual user.

This business model follows an approach which adopts elements from both the Open Source model and classic license-based software distribution. At the same time there is a harmonising effect for all users since engaging in the papiNet network does impose only minor set-up cost. Moreover, using the same Message Service on each participant's side drastically reduces integration effort (as will be presented and quantified in the case study).