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Is it clear what string the pattern facet of a union type applies to? It seems to me it should be the lexical space value of the winning type in the union, i.e. when processing an item with a union type, we go directly to the member type definitions, and for each one in turn: 1. normalize per the whiteSpace facet _of that member type defn_; 2. check the pattern facet of the union type itself; 3. check the pattern facet of the member type defn; 4. convert to value and check other facets from the member type defn. If any of (2), (3) or (4) fail, go on to the next member type defn. I don't think the REC as it currently stands makes clear that this is what happens, or that it doesn't. See: http://lists.w3.org/Archives/Public/www-xml-schema-comments/2002OctDec/0060.html
Response from Ashok: http://lists.w3.org/Archives/Public/www-xml-schema-comments/2002OctDec/0063.html
At the face to face meeting of January 2006 in St. Petersburg, the Working Group decided not to take further action on this issue in XML Schema 1.1. (This issue was not discussed separately; it was one of those which were dispatched by a blanket decision that all other open issues would be closed without action, unless raised again in last-call comments.) Some members of the Working Group expressed regret over not being able to resolve all the issues dealt with in this way, but on the whole the Working Group felt it better not to delay Datatypes 1.1 in order to resolve all of them. This issue should have been marked as RESOLVED /WONTFIX at that time, but apparently was not. I am marking it that way now, to reduce confusion.