You're right, but it's idiotic terminology. The word 'open' is used for other things (e.g. open source). Like the FSF constantly trying to explain that a 'free' product doesn't actually mean it's 'free' (huh?), it should've been something else. I don't know what offhand, maybe "recognized standard" or "licensable defacto industry standard but not necessarily cheap" or I don't know what.
I agree. Unfortunately the "Open Standard" term is with us now. It would just be nice if those in either a commenting or even a "blogging" capacity (in some cases) would understand the terms they use incorrectly. But I know, thats asking way too much.