ico format was registered by a third party with the Internet Assigned Numbers Authority (IANA) under the MIME type image/. Unlike in the prior scheme, the file can be in any Website directory and have any image file format. The standard implementation uses a link element with a rel attribute in the section of the document to specify the file format, file name, and location. The favicon was standardized by the World Wide Web Consortium (W3C) in the HTML 4.01 recommendation, released in December 1999, and later in the XHTML 1.0 recommendation, released in January 2000. This side effect no longer works, as all modern browsers load the favicon file to display in their web address bar, regardless of whether the site is bookmarked. A side effect was that the number of visitors who had bookmarked the page could be estimated by the requests of the favicon. It was used in Internet Explorer's favorites (bookmarks) and next to the URL in the address bar if the page was bookmarked. Originally, the favicon was a file called favicon.ico placed in the root directory of a website.

In March 1999, Microsoft released Internet Explorer 5, which supported favicons for the first time. 3.5 Home screen icons on mobile devices.3.4 HTML5 recommendation for icons in multiple sizes.

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