Electronic Comment Filing System

ECFS Filing Proceeding: 95-155
Name of Filer: VANITY INTERNATIONAL ETAL
Author: FARHAT, ANN C.
Lawfirm: BECHTEL & COLE
View Filing:
Pages 1 to 25 (25)
Pages 26 to 50 (25)
Pages 51 to 75 (25)
Pages 76 to 77 (2)
Type of Filing: PETITION
Exparte Presentation: NO
Date Received: 2/29/96
Date Posted: 3/1/96 12:00 AM
DA Number:
File Number:
Address:
Preview of First Document

ORIGINAL BEFORE THE FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D.C. 20554 In the Matter of Toll Free Service Access Codes TO: The Chief, Common Carrier Bureau Federal Communications Commission CC Docket No. 95-155 DOCKET FILE COpy ORIGINAL RECEI\lED FEB 29 1996 FEDEFVU. COMMUNICATIONS CUMMISS:OM OfFICE OF SECRETARY EMERGENCY PETITION FOR SPECIAL RELIEF Ann C. Farhat, Esquire Bechtel & Cole, Chartered 1901 L Street, N.W. Suite 250 Washington, D.C. 20036 202/833-4190 Counsel for Vanity International and Genesis Two, Inc. February 29, 1996 No. 01 Copies "",'d(}J (\ List ABCDE Summary .. Background Standing Argument Relief Requested Conclusion . . . TABLE OF CONTENTS i 2 7 10 21 23 SUMMARY The Petitioners seek an order directing Data Services Management, Inc. to modify the appropriate relication database to render "unavailable" the toll free number 888-256-7766 and certain other limited subscriber numbers. Prior to the adoption, by the Chief, Common Carrier Bureau, of the Report and Order, Mimeo No. DA 96-69, released January 25, 1996, the Petitioners made good faith efforts, consistent with the Commission's general directives, to assure that their previously-assigned 800 numbers would be included in the 888 replication database and would, as a result, be unavailable at least until the Commission could resolve various issues surrounding reservation of 888 numbers for "vanity" purposes. However, the Petitioners' efforts were thwarted, through no fault of their own, by the private organizations which, under the system endorsed by the Commission, was established for assuring such temporary unavailability of certain 888 numbers, including those held by parties in the Joint Petitioners' position. If the requested relief is not granted, the Petitioners risk losing their ability to utilize the 888 numbers, since, absent the requested relief, the numbers may be placed in service by third parties. Such third parties may then proceed to trade upon the goodwill and business reputation created by the Petitioners in their 800 numbers, thus irreparably harming the Petitioners. (i) BEFORE THE FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D.C. 20554 In the Matter of Toll Free Service Access Codes TO: The Chief, Common Carrier Bureau Federal Communications Commission CC Docket No. 95-155 EMERGENCY PETITION FOR SPECIAL RELIEF Pursuant to §§ 1.103, 1.45, 1.4(b), and 1.48 of the Commission's Rules, 47 C.F.R. §§ 1.103, 1.45, 1.4(b) and 1.48, Vanity International ("Vanity International r ,) and Genesis Two, Inc. ("Genesis") (collectively Joint Petitioners"), by their attorneys, petition, on an emergency basis, the Chief, Common Carrier Bureau ("Bureau"), of the Federal Communications Commission ("FCC" or "Commission") for special relief arising from the Report and Order, ("R&O") , Mimeo No. DA 96-69, adopted and released in the above- referenced docketed proceeding on January 25, 1996, FCC Rcd. (1996) .1 As will be demonstrated, absent immediate Bureau ex parte action and issuance of an Order by no later than 12:01 a.m. 1 Due to the rapidly approaching March 1, 1996 implementation deadline established by the Bureau for the deployment of 888 toll free access service, joint petitioners have no choice but to file their petition prior to the March 1st date. The joint petitioners note, however, that public notice of the release of the Bureau's R&D in this proceeding has not as yet commenced, since pursuant to the undersigned's knowledge (based upon review of Federal Registers published since January 25, 1996 and a call placed to the FCC's Clerk, Publications Office), there has been no publication of the R&D in the Federal Register and such publication is not expected for several days, well after the March 1, 1996 deadline. See 47 C.F.R. § 1.4(b) (1) (public notice of an order following notice and rulemaking commences with publication in the Federal Register). See also 47 C.F.R. § 103 (a) (referenced by the Bureau in an ordering clause at~60 of its R&D as support for the effective date being established upon adoption of the R&D) which also provides that the aesignation of an earlier or later effective date shall have no effect on any pleading periods. - 2 - on March 1, 1996, directing Data Services Management, Inc. to mark on the appropriate replication database, thereby rendering "unavailable," toll free number 888-256-7766 and the limited subscriber numbers (less than 100) set forth at Attachment B1 and B2 of Exhibit 1 to this petition, deployment of the new 888 toll free access service authorized by the R&O will result in serious harm to joint petitioners, in direct violation of joint petitioners' procedural and substantive rights afforded them by the underlying policies of the Commission acting pursuant to delegated authority in the adoption and implementation of the 888 toll free service. 2 BACKGROUND In an apparent response to concerns that the availability of the numbers in the existing 800 toll free access service were rapidly being depleted, the Commission adopted a Notice of Proposed Rulemaking ("NPRM") on October 4, 1995 in In The Matter of Toll Free Service Access Codes, FCC No. 95-419, released October 5, 1995, FCC Red. (1995). The Commission stated that in light of this apparent situation, it believed it was necessary to "initiate a rulemaking proceeding through which we seek to assure that in the future, toll free numbers are allocated on a fair, equitable and orderly basis" (further emphasis added). Id, slip op. at~I, p. 3. As pertinent here, in general, the Commission sought comment on proposals to: (1) promote the efficient use of 2 Contemporaneously with the filing of this petition, joint petitioners will be filing a Emergency Motion for Stay, pursuant to § 1.43 of the Commission's Rules, 47 C.F.R. § 1.43. - 3 - toll free numbers; (2) foster the fair and equitable reservation and distribution of toll free numbers; (3) smooth the transition period preceding introduction of a new toll free code; (4) guard against warehousing of toll free numbers; and (5) determine how toll free vanity numbers should be treated. R&O, slip op. at 3 (1 4). Interested parties were directed to file Comments with the FCC on or before November 1, 1995 and Reply Comments on or before November 15, 1995. NPRM, slip op. at 35-36 (1 61). Because of the Commission's apparent desire to satisfy industry demand for the deploYment of 888 service by March 1, 1996, the Commission, pursuant to delegated authority, adopted and released an Order, Mimeo No. DA 95-2337, on November 13, 1995, declining to extend the date of the condensed comment periods established by it so as not to "jeopardize the Commission's ability to establish rules for the national implementation of 888 as the next toll free service access code. ,,3 As pertinent to the primary concerns of the joint petitioners, the Commission, inter alia, requested comments on several proposals (e.g., a right of first refusal, industry classification, etc.) which should be adopted in affording existing commercial 800 subscribers the right to protect their corresponding numbers in the proposed 888 toll free service. NPRM, slip op. at pp. 24-29. The 3 As it turns out, in light of a conservation plan adopted by the Bureau and implemented by the industry, 800 toll free numbers are available through June 1996, four months after the industry motivated request for deploYment of 888 toll free access code service on March 1} 1996 is scheduled to commence. See R&O, slip op. at 21 (, 35). - 4 - Commission recognized the interests of BOO subscribers in "having invested substantial resources in advertising the number and in establishing the reputation for it." NPRM, slip op. at pp. 24-25 (~35)(wherein the Commission included examples of such vanity numbers as 1-800-THE-CARD and I-Baa-FLOWERS). Various parties submitted comments, including petitioner Vanity International, who supported the replication of vanity numbers in the 88B toll free service. Comments of Vanity International filed on November I, 1995. An industry-based committee, SMS/BOO Number Administration Committee, known as "SNAC," submitted a proposal to the Commission, to address the issue of replication. In its replication plan it informed the Commission that it had directed Responsible Organizations ("RespOrgs") to poll their respective 800 subscribers to determine which 800 subscribers wish to replicate in the 888 service. Once the vanity numbers were identified, SNAC directed that DSMI, the database manager for the current 800 toll free service, mark such numbers unavailable. Once the numbers were designated unavailable, the numbers would not be released for reservation at the time the rest of the 88B code is available for reservation. R&D, slip op. at pp. 15-16(~~25-28). Based on SNAC's ex parte submission on January 18, 1996, the Commission estimated over 310,000 subscribers would be interested in replication of their numbers in the 800 service. R&D, slip op. at pp. 7 - 8 (13) . On January 25; 1996, a R&D in this proceeding was adopted and - 5 - released by the Commission's Common Carrier Bureau. Resolution of the instant proceeding had been delegated to the Bureau by the full Commission by Order, Mimeo No. FCC 96-18, adopted on January 24, 1996 and released January 25, 1996. Once again, in light of the Commission's belief that 800 service access codes may be depleted in the near future and the industry's previously anticipated deploYment date of March 1, 1996, and in further consideration of the delay caused by the Commission furlough and snow emergency days, the Commission delegated the implementation of the 888 service to the Common Carrier Bureau, concluding that such delegation was the most efficient way to ensure that regulatory decisions necessary for the March 1, 1996 deploYment would be made. As pertinent herein, the Bureau's R&O adopted the SNAC Plan, modifying it to permit additional polling by the RespOrgs, while retaining the March 1, 1996 deploYment date of 888 toll free access service. R&O, slip op. at pp. 2-3(~2) and pp. 33-34(~58). The Bureau further directed that I1D8MI set aside those 888 numbers identified by the RespOrgs as a result of this polling process by placing these 'vanity numbers' in 11 unavailable 11 status until the Commission resolves whether these numbers ultimately should be afforded any permanent special rights or protection. 11 R&O, slip op. at pp. 2-3(~2). Vanity numbers were defined by the R&O I1to describe a number that a subscriber requests be made unavailable during the initial 888 reservation period. 11 I1A number designated l1unavailable 11 in the 8M8 database is not avavailable for assignment to any toll free s'ubscriber. 11 Id, fns. 4, 5. - 6 - In direct response to petitioner Vanity International's express concerns that service providers/RespOrgs were not adequately polling smaller commercial subscribers like it, the Bureau modified the SNAC Plan, directing RespOrgs to continue the polling process, for a period of one week (January 26, 1996 until 11:59 p.m. on February 9, 1996), contacting commercial subscribers not previously polled. R&D, slip op. at p. 2 (, 2); p. 23 (, 38) . The polling window, which occurred after the release of the Bureau's R&D, was the only polling period specifically directed by the Bureau in this proceeding. Once the window period closed on February 1, 1996 at 11: 59 p. m., from February 2, 1996 until February 9, 1996, DSMI was given time to process all replication requests in the database. On February la, 1996, at 12:01 a.m., an early reservation process went into effect, permitting RespOrgs to reserve available 888 numbers listed in the DSMI database. The early reservation process was established so that DSMI could phase in requests for new 888 service prior to the commencement of such service on March 1, 1996, without being overloaded. Prior to Vanity International's ex parte comments on January 19, 1996, filed with the Commission the week before the Bureau's adoption of the R&D on the 25th of January, the Bureau was under the apparent assumption that all RespOrgs, as directed by SNAC, were actively engaged in polling their 800 subscribers. See e.g., Comments of the Service Management System/800 Number Administration Committee of the Order and Billing Forum filed with the FCC on November 1,1995 '(pp. 13-14) and the SNAC 888 Replication Plan - 7 - filed with the FCC on December 13, 1995, p. 1. Petitioner Vanity International, however, put the Commission directly on notice, that notwithstanding representations made to the Commission by SNAC and other commenters (see, e.g., LDDS' comments discussed at fn. 9 infra), that the RespOrgs were polling their commercial subscribers as directed by SNAC, to permit SNAC to process the information and inform the Commission of its results, many RespOrgs were not, in fact, contacting or polling their commercial 800 subscribers, especially smaller commercial subscribers. In direct response to Petitioner Vanity International's concerns, the Bureau directed that the polling process by RespOrgs of their previously unpolled commercial 800 subscribers continue for another week. STANDING Petitioner Vanity International is a vanity design and consulting firm, owned by Loren Stocker. See Declaration of Loren Stocker of Vanity International, Exhibit 1 attached hereto. Vanity International timely submitted Comments in response to the NPRM, in addition to the submission, on January 19, 1996, of a permissible ex parte filing. Since the adoption of the R&O on January 25, 1996, events have occurred which require petitioner to seek special relief from the Bureau before the scheduled commencement of the 888 access code on March I, 1996 as directed by the R&O. As will be demonstrated, despite Vanity International being aware of the Commission's rulemaking proceeding and the R&O adopted and released by the Bureau on January 25, 1996, the R&O's effective date, Mr. Stocker, acting 'on behalf of Vanity International and its - 8 - affiliated companies, was nonetheless frustrated in its efforts, following the release of the R&D, to seek replication of all commercial 800 numbers of Vanity International's affiliated companies. Mr. Stocker timely submitted replication requests to various RespOrgs within the brief one-week reservation deadline of January 26, 1996 through February I, 1996, first announced by the Bureau in its R&D released on January 25th. The most notable roadblock faced by Vanity International in seeking replication protection consisted of arbitrary internal deadlines apparently adopted by certain RespOrgs (in Vanity International's case, AT&T), which unilaterally, and without prior notice to Vanity International, shortened the polling period that was established by the R&O. In adhering to its internal deadline rather than the Bureau's, RespOrg AT&T refused to accept Vanity International's requests for replication and refused to provide those requests to DSMI. See Exhibit 1 (declaration of Loren Stocker of Vanity International). These events arose after the Bureau's immediate adoption of the R&O and are being presented to the Bureau for immediate rectification. Petitioner Genesis is a an Oregon corporation which owns and operates a cut flowers and gift delivery business under the name of 800-BLOSSOM. As indicated in the declaration of its President, Robert H. Tate (Exhibit 2 herein), Genesis first learned of the potential for an 888 service well after the deadline for the submission of Comments and Reply Comments in the NPRM. Genesis, which provides its'cut flowers and gift business to customers on a ~--"'_. - 9 - nationwide and international basis (and was not familiar with telecommunications issues heretofore) t lacked actual knowledge relative to the Commissionts NPRM and comment periods. Moreover, Genesis was never polled by its service provider and RespOrg, LDDS, as to whether Genesis desired to protect its 800-BLOSSOM number in the corresponding proposed 888 service, including during the subsequent window period established by the Commission in the R&O upon its adoption. See Declaration of Robert H. Tate, Exhibit 2 hereto t pp. 6-7 (at 1 10). Upon learning of the proposed 888 service in early December 1995, from a competitor to Genesis' service provider for 800-BLOSSOM, Mr. Tate made several calls over the period of early December 1995 through January of 1996, to various service providers, including LDDS t to ensure that its interest in protecting its corresponding 888 number be placed on the appropriate list or lists which he had become aware were being compiled by the service providers, including LDDS. Tate Declaration, Exhibit 2, pp. 1-5. Notwithstanding Genesis t extensive efforts, the specific facts of which are set forth at Exhibit 2 herein, Genesis was also unfairly precluded from obtaining replication protection as provided in the Bureau's R&O. Consequently, joint petitioners, whose economic interests in protecting against assignment to other subscribers of any commercial 800 toll free number joint petitioners were entitled and timely sought to have replicated t are adversely affected by the Bureau's R&O, and entitled to seek special relief therein before the deployment of the new 888 toll - 10 - free service on March 1, 1996. See FCC v. Sanders Brothers Radio Station, 309 U.S. 470 (1940). The Bureau must act on this emergency request before 12:01 a.m. on March 1, 1996 in light of the serious public interest questions which arise as a result of joint petitioners protection rights afforded under the R&O being ignored or dishonored by certain RespOrgs identified herein and joint petitioners having no choice but to seek replication protection through their respective RespOrgs rather than providing the necessary information directly to DSMI. See, e.g. R&O, slip op. at p. 2, fn. 3. ARGUMENT Absent immediate ex parte action by the Bureau as requested herein, the implementation of the R&O and 888 toll free service commencing March 1, 1996 will impermissibly deny joint petitioners' procedural and substantive rights in having "protected" various commercial toll free numbers I which the FCC has specifically determined are subject to being protected pending further decision by it within the year. R&O, slip op. at pp. 2-3,(~2). In what can only be described as an adult version of the game IIkeep away, II certain participants in the 800 service provider industry, including certain RespOrgs, have impermissibly engaged in conduct resulting in current 800 commercial vanity number subscribers, like joint petitioners,4 from being afforded 4 According to the NPRM, "ea] vanity number is a telephone number for which the letters associated with the number's digits on a telephone handset spell a name or word of value to the number holder. Examples of such vanity numbers include nl-800-THE-CARDn and "1-800-FLOWERS." NPRM, slip op. at 24(~35). The NPRM also - 11 - "protection ll in the form of replication of their respective 800 commercial toll free numbers in the proposed 888 toll free access code, pending further Commission action, as provided in the Bureau's R&O. In adopting its R&O, the Bureau adopted the SNAC Plan as modified (e.g., to permit additional polling) for the deployment of new 888 toll free access service based on representations made in that Plan, which included that RespOrgs were directed by SNAC to poll their subscribers, report the information to SNAC, who in turn would inform the Commission as to the level of interest by current commercial subscribers to replicate their 800 numbers in the proposed 888 service. See, e.g., R&O, slip op. at pp. 2-3 (" 2), pp. 22 - 23 ( , , 3 7 - 3 8) . It further adopted and seeks to implement the R&O in a manner it believes will satisfy the demand of the industry, which has consistently requested a March I, 1996 deployment deadline, notwithstanding the significant lessening of need to meet the March I, 1996 deadline in light of the Commission's conservation plan providing for the availability of 800 service numbers to the public through June 1996. Prior to the adoption of the R&O, the Bureau was informed by petitioner Vanity International that RespOrgs were not polling their commercial 800 subscribers to determine the interest by those determined that for purposes of the NPRM, lIvariity numbers may also include any numbers in which the holders have a particular interest, be it economic, commercial or otherwise. II Id. For purposes of the R&O, the term IIvanity number ll describes a number that a subscriber requests be made unavailable during the initial 888 reservation period. R&O, slip op. at p. 2, fn. 4. - 12 - customers in having such subscribers' numbers replicated. See Ex Parte Comments of Vanity International filed on January 19, 1996 and referenced at " 33 and 37 of the R&O. In response, the Bureau directed the RespOrgs to continue polling, recognizing that the RespOrg was in the best position to make such inquiry. Id, at (, 37). Unfortunately, as experienced by joint petitioners, certain RespOrgs, even after being informed that the R&O specified further polling of those commercial 800 subscribers not previously polled, failed to poll or notify their commercial 800 subscribers. See Exhibits 1 and 2 herein. The impermissible action by certain RespOrgs, if not corrected by the Bureau before the March 1, 1996 deployment date, will result in substantial harm to joint petitioners. The commercial 800 numbers which joint petitioners timely requested be replicated, have already been reserved by other RespOrgs on behalf of other subscribers (e.g., Genesis' replication number 256-7766) and/or will be available to be placed in service on March 1, 1996. Joint Petitioners have been treated like "bouncing balls". First, they were not polled and informed by their RespOrgs of the proposed replication plan, matters essential to joint petitioners' business operations. Secondly, joint petitioners were excluded from placement on lists compiled by RespOrgs during internal compilation periods as well as during the Bureau established polling period, though requests were timely made by joint petitioners for such inclusion. Moreover, Genesis' requests to its assigned RespOrg LDDS and other RespOrgs for replication during the period of early - 13 - December 1995 through January 1996 were repeatedly denied, and each denial was followed with misleading information from the RespOrgs that the lists being compiled were for FCC informational purposes only and had no legal significance. When the Bureau's one week polling period was established in January, 1996, once again joint petitioners were not polled despite Bureau directive to continue polling commercial subscribers not previously polled (i.e., Genesis, Vanity International and no doubt others) . The "bouncing" continued when Vanity International timely sought replication during the Bureau's polling period, only to be cut-off by a RespOrg artificially imposing a deadline shorter than the Commission's permissible polling replication window, who then refused to seek replication with DSMI on behalf of petitioner Vanity International. In certain instances, Vanity International's timely requests were also not protected by other RespOrgs but for which Vanity International has no independent knowledge as to the reasons for such failures. Ultimately, all such activities impermissibly engaged in by certain RespOrgs resulted in joint petitioners being denied basic procedural and substantive rights under the R&O. Inaction by the Bureau to immediately investigate and correct the adverse consequences which continue to befall joint petitioners as a result of the unlawful activities of certain RespOrgs in connection with the implementation of the R&O, can only be viewed as tacit approval of the activities of certain RespOrgs by the Bureau, and such tacit approval is otherwise contrary to law. See Administrative Procedure Act, 5 U.S.C. § 706(1) (B). - 14 - In adopting the NPRM, statutory authority for the Commission to promulgate the proposed 888 access rules was set forth at , 12. Section One of the Communications Act (the "Act") expressly requires the Commission "to make available, so far as possible, to all the people of the United States a rapid, efficient, Nation- wide, and world-wide wire and radio communication service." As the NPRM further noted, "Title II of the Act confers upon the Commission responsibility for regulating the activities engaged in the provision of common carrier services." Id. S Given this statutory mandate, the Bureau must provide the relief joint petitioners seek prior to the March 1, 1996 deployment date based on the facts presented herein. The statutory mandate to the Commission clearly provides the Commission with authority to prevent any person including Mr. Tate and Mr. Stocker, from being forced to engage in what can only be described as "herculean" efforts to protect their interests afforded to them by the R&O but denied them by the unlawful activities of certain RespOrgs, whose activities the Commission exercises regulatory authority. See CompTel Order, supra, 8 FCC Red. at 1428. The R&O afforded considerable deference to the SNAC Plan and the underlying assumptions that formed the basis of the Plan in its adoption of that Plan, as modified. However, the Bureau's R&O 5 Moreover, the Commission has regulatory authority with respect to access to the Service Management System (SMS) database by RespOrgs under Title II of the Act. See In the Matter of Provision of Access for 800 Service, 8 FCC Red. 1423, 1428 (, 28) (1993) ("CompTel Order") (wherein the Commission determined that such access by Re'spOrgs constitute provision of common carrier services) . - 15 - provides no mechanism in which to resolve the dilemma impermissibly imposed on joint petitioners by the R&O. As Mr. Tate attests, the comments of the Commission's staff directed petitioner Genesis to contact DSMI for information concerning his dilemma. 6 In seeking immediate resolution of the harm caused to Genesis, Mr. Tate contacted DSMI where he was told by DSMI, that absent Commission intervention directing DSMI to do so, DSMI would not alter the replication table. Genesis did seek Commission intervention (fn. 6 supra), but was informed by a staffperson that there was nothing the Commission could do! Mr. Tate was consistently told by the RespOrgs that they were only keeping FCC informational lists with no legal significance. When the RespOrgs were directed by the R&O to continue polling, joint petitioners were never contacted. See Exhibits 1 and 2 attached. And even where petitioner Vanity International attempted to be placed on the replication table during the Bureau established polling window, it was impermissibly cut-off by its RespOrg due to an internal imposed deadline shorter than the Bureau's window. While the Commission may carefully consider comments by members of an industry intricately familiar with challenges being presented in establishing rules affecting the industry, and may 6 Relief from the intolerable situation Genesis found itself in was previously sought from Ms. Irene Flannery of the Common Carrier Bureau in the form of a letter from Genesis' Portland, Oregon attorneys on February 8, 1996 (a copy of the letter is attached as Appendix B to Mr. Tate's declaration (Exhibit 2). In a follow-up call to the Commission on February 9, 1996, Genesis' Oregon counsel was informed by Bradley Wimmer of the Common Carrier Bureau, that there was nothing the Commission could do. Tate Declaration, Exhibit 2, p. 14(~27) . - 16 - rely on the members of the industry to act responsibly in carrying out their duties to the public as mandated by the Commission and the Act, only the agency is afforded the authority to promulgate rules, and it must do so by reasoned decision-making. Motor Vehicle Manufacturer's Association v. State Farm Mutual Auto Ins. Co., 463 u.s. 29 (1983). The Bureau, pursuant to delegated authority, adopted the R&D, affording replication protection to joint petitioners, while relying on RespOrgs, entities over whom the Commission has regulatory authority, to act responsibly in carrying out its duties as RespOrgs and common carriers. The actions of certain RespOrgs as described by joint petitioners herein were not remotely responsible. The deploYment of the new 888 toll free access service under the R&D without implementing the relief requested by joint petitioners herein renders the decision of the Bureau beyond the bounds of reasoned-decisionmaking. The Catch-22 situation which joint petitioners find themselves in despite affirmative efforts to avail themselves of the protection afforded in the R&D, is not only intolerable, it is contrary to the Commission's mandate in seeking to provide communications service to lIall of the people of the United States ll in an efficient, fair and orderly manner. The experiences of Vanity International and Genesis outlined in Exhibits 1 and 2 attached hereto, respectively, clearly belie the fulfillment of such mandate by the Commission. The Bureau must step in and protect joint petitioners where the RespOrgs have impermissibly failed to do so. - 17 - The Commission's recognition of potential civil liability of those RespOrgs who have not acted responsibly does not solve the dilemma faced by Vanity International and Genesis. R&D slip op. at p. 22(~37). The scheduled deployment date of the new 888 access code is March 1st. Joint petitioners have done everything humanly possible and then some to resolve their unjustifiable predicament, including speaking to the FCC, the RespOrgs involved and DSMI. They have suffered enough and should not be required to suffer the irreparable harm which will result upon the Commission's proposed deployment of the 888 service without ensuring that the numbers which the joint petitioners sought to have replicated consistent with the R&D are placed on the DSMI database as "unavailable" and therefore "protected. "7 7 Protection to commercial subscribers with vanity numbers like Genesis' 800-BLOSSOM even on an interim basis is a significant right, and the Bureau recognized this by its deferral of a final ruling on the subject pending further consideration. In affording the interim protection the Bureau intended to balance the interests of commercial subscribers like Genesis and Vanity International who have invested significant resources in their respective vanity numbers with the need to provide toll free service to the public. R&D, slip op. at(~14).While joint petitioners believe that such protection should be afforded on a permanent basis, they will await further action by the Commission or its staff pursuant to delegated authority to provide further information in support of a final rule. The Bureau's R&D should not, however, have the clear, unintended effect of stripping Genesis and Vanity International from the protection they were required to be afforded by the R&D. This is especially so where the improper actions of Genesis' RespOrg in failing to replicate Genesis' 800 -BLOSSOM number, a matter which could easily have been done, will result, absent immediate Bureau intervention, in the assignment of the corresponding 888 number to an entity whose agents have expressly represented intends to compete in the flower business, in order to take advantage of Genesis' 800-BLOSSOM business, damaging the commercial interests of Genesis and leading to confusion of the public. See fn. 8 infra. - 18 - Secondly, joint petitioners, already forced to incur significant time and expenses in numerous unsuccessful efforts at replication, see generally Exhibits 1 and 2 herein, have been forced to expend additional resources before the FCC with the filing of the instant emergency petition. Further resources may also have to be expended by joint petitioners if required to seek relief from the United States Court of Appeals should the Bureau decline or refuse joint petitioners the relief requested herein. Wi th the impending deploYment of the 888 toll free service on March 1st, the ability of joint petitioners in seeking monetary damages and/or injunctive relief from the unlawful actions of one or more RespOrgs in a court of competent jurisdiction is difficult if not impossible and will also unduly require further significant expenditures of time and money. The reality is the Commission and its delegated authority have the regulatory power to rectify the intolerable situation joint petitioners find themselves in, which situation was caused by certain RespOrgs failing to protect the interests of subscribers like Genesis and Vanity International, by failing to poll and inform them of the new 888 toll free service in order to determine interest in replication and by excluding and refusing to honor timely requests by joint petitioners to be placed on replication lists. These failures have impermissibly resulted in the corresponding 888 numbers to be made available on a first-come, first serve basis for reservation and assignment by outside parties. 8 - 19 - The Commission can and must exercise its regulatory authority over those RespOrgs, like LDDS, who have acted improperly and unlawfully in failing to perform their responsibilities as RespOrgs, including providing the Bureau with the mistaken impression that responsibilities. 9 such RespOrgs adequately performed their 8 With respect to the number 888-256-7766, the 888 number Genesis sought to replicate, the number has been secured by a RespOrg, whose anonYmous client apparently intends to engage in a competing flower business, by taking advantage of customer confusion and misdials (See Tate Declaration, Exhibit 2 herein, pp. 17-18, 1 33), and the built-up goodwill of Genesis with respect to its corresponding 800-256-7766 (800-BLOSSOM) number utilized in its flower and gift business. This is precisely the conduct which the FCC sought to avoid in providing interim protection to a qualified subscriber like Genesis seeking replication. R&O, slip op. at 7 (1 12) and 33 (1 58) (recognition of commercial interest in 800 numbers which competitors may seek to underminei interim protection provided for all equivalent 888 numbers currently designated by current commercial 800 subscribers by setting those numbers aside during the initial 888 reservation period). It is unclear at this time whether the unknown subscriber has sought assignment of the 888-256-7766 from reserve status. 9 Incredibly, LDDS has been intimately involved in the adoption and implementation of the Bureau's R&O, having submitted Comments and Reply Comments in response to the NPRM. Despite its involvement in the 888 toll free service rulemaking, including its support for the one-time replication of all 800 numbers provided such replication was fee-based (See Reply Comments of WorldCom, Inc. d/b/a LDDS WorldCom filed November 20, 1995 at p. 8), LDDS nonetheless failed to act as a responsible RespOrg. As indicated, Genesis was never polled by LDDS, its service provider and RespOrg, and despite repeated requests by Genesis to be added to a replication list compiled by LDDS, Genesis was consistently refused. See Tate Declaration, Exhibit 2, pp. 1-5). LDDS' irresponsibility is not only evidenced by the deficiencies described herein, but is exacerbated by LDDS' course of conduct in misleading Genesis which made its replication requests known to LDDS, its service provider/RespOrg, on several occasions in December 1995 and January 1996. In each instance LDDS represented that the lists previously compiled by it were for FCC informational purposes only and had no force and effect as the FCC had not yet ruled. -See Tate Declaration, Exhibit 2 herein, p. 4 (1 6) ) . Just prior to this time period, in November, 1995, LDDS - 20 - Absent the immediate issuance by the Bureau of an ex parte Order, issued prior to 12:01 a.m. on March 1, 1996, directing, inter alia, DSMI to mark as "unavailable" on the 888 toll free database, toll free number 888-256-7766, and all the commercial subscriber numbers requested by Vanity International and its affiliated companies at Attachment B1 and B2 to Exhibit 1 herein, until the Commission further addresses and issues its final rule concerning the protection to be afforded 800 vanity users with respect to 888 replication, these numbers will be subject to reservation and ultimate assignment to potential subscribers who have or will in the future, obtain use of these numbers, to the immediate detriment of Genesis and Vanity International, whose very protection rights the Bureau sought to respect in the adoption of the R&D. This result is contrary to the letter and spirit of the Bureau's R&D and must be rectified by the Bureau under the facts affirmatively represented to the Commission in its Comments that it was aware of SNAC's study in attempting to develop "pertinent data" and that LDDS was "surveying its own 800 customers and [would] report back to the FCC via the ex parte process should [LDDS] garner an accurate reading of [LDDS'] subscribers' desires. Comments of WorldCom, Inc. d/b/a LDDS WorldCom filed with the FCC on November 1, 1995. As previously noted, Genesis was never polled by LDDS, even after the R&D adopted a further polling window, and Genesis was consistently refused placement on lists previously compiled by LDDS and other RespOrgs which lists were purportedly limited to FCC informational purposes. In checking the FCC's database in this proceeding, there is no record of LDDS submitting any further comments via the ex parte process and Genesis seriously doubts that such polling efforts were made based on its experiences with LDDS. This is so notwithstanding Genesis being informed for the first time on February 5, 1996 by an individual associated with LDDS that LDDS did have a replication schedule in place at time periods Genesis sought replication with LDDS (Tate Declaration, Exhibit 2, pp. 8-9. (, 14)), from which Genesis was impermissibly excluded. - 21 - presented herein. RELIEF REQUESTED The FCC is clearly authorized and must take immediate ex parte 10 action, prior to the March 1, 1996 deployment date of 888 toll free service, directing DSMI to immediately mark as "unavailable" on the 888 toll free database, all joint petitioners' commercial 800 toll free numbers for which replication was not previously afforded joint petitioners despite timely requests made to the affected RespOrgs. To the extent required, the Bureau shall further direct all appropriate RespOrgs, including but not limited to, LDDS (Genesis' RespOrg), AT&T, Sprint and Allnet/Frontier (Vanity International affiliated companies' RespOrgs) , and TWC Communications (the RespOrg who holds a reservation for an anonymous client who requested the 888 version of Genesis' 800-256- 7766 number), who have reserved and/or assigned to a RespOrg or any third party, any of the affected 800 commercial toll free numbers for which joint petitioners attempted to seek replication and were denied, to unreserve and/or re-assign, all commercial 800 toll free subscriber numbers which have not been previously replicated or otherwise reserved by joint petitioners, for placement on the DSMI 10 Ex parte action by the Bureau pursuant to 47 C. F. R. § 1.45(e) is appropriate since replication protection currently afforded 800 commercial subscribers like joint petitioners is suject to the Bureau or the Commission's issuance of a final ruling within the year. Joint petitioners are seeking only that to which they are entitled,under the Bureau's R&O and accordingly the Bureau has the discretion to take action ex parte in granting the relief requested by joint petitioners.' - 22 - replication list as "unavailable."ll This action should also be taken immediately so that DSMI can inform appropriate RespOrgs that any subscriber who sought early reservation under the R&O's early reservation plan of the 888 numbers which petitioners previously requested be replicated prior to the early reservation period which commenced on February la, 1996, can be provided with other numbers for immediate reservation or use. Since the early reservation plan was designed to avoid a last minute "gold rush" on the DSMI database on the scheduled deployment date of March 1st, the assignment of other available numbers in either 800 or the new 888 toll free service will not significantly harm the public or any other interested party. Moreover, the R&O continues to be subject to the timely filing of reconsideration or appeal, which time periods have not expired (see 47 C.F.R. §§ 1.103 and 1.4(b)). Accordingly, any party that has expended any resources, nominal or otherwise, in connection with the promotion of the new 888 toll free access numbers reserved or assigned during the early reservation period has taken such action at its own risk. See Teleprompter Corp., 50 Rad. Reg. 2d (P&F) 125, 127 (CATV Bur. 1981); Improvement Leasing Co., 73 F.C.C.2d 11 The joint petitioners are seeking immediate relief as requested herein. As a separate matter down the line, the Bureau may also consider what action if any it should take in penalizing RespOrgs who have acted improperly, for example, by their failure to adequately poll all of their existing commercial subscribers, and their failure to honor timely requests made directly to the RespOrg by the subscriber for replication, including consideration of the imposition of an appropriate fine or monetary forfeiture, or more serious action such as decertification of an entity as a RespOrg. See, e.g., NPRM, slip op. at 23 (, 33). - 23 - 676, 684 (1979), aff'd, Washington Ass'n for Television and Children v. FCC, 665 F.2d 1264 (D.C. Cir. 1981). CONCLUSION For the foregoing reasons, joint petitioners Vanity International and Genesis Two, Inc. request the Common Carrier Bureau of the Federal Communications Commission, pursuant to delegated authority, to take immediate action no later than 12:01 a.m. on March 1, 1996 and issue an ex parte Order, directing Data Services Management, Inc. to place on the appropriate replication table, thereby rendering nunavailable," the toll free number 888- 256-7766 and all subscriber numbers listed at Attachment Bl and B2 to Exhibit 1 hereto, which joint petitioners were entitled to replicate but were wrongfully denied such protection, and to take any other ex parte action consistent with joint petitioners requests herein, and consistent with the policies and rules of the Bureau in adopting, establishing and implementing the 888 toll free service. Respectfully submitted, Ann C. Farhat Bechtel & Cole Chartered 1901 L Street, N.W. Suite 250 Washington, D.C. 20036 202/833-4190 Counsel for Vanity International and Genesis Two, Inc. February 29, 1996 Exhibit 1 · 'i DECLARATION OF LOREN STOCKER for VANITY INTERNATIONAL and Arnliated Companies Loren C. Stocker, Managing Partner ofVanity International, hereby submits declaration under penalty ofpeIjury as follows. Vanitr International is the world's premier vanity design and consulting finn. We specialize in strategic marketing through the creation, acquisition, and application of vanity numbers, typically vanity 800 numbers. I am the founder ofVanity International and sole owner ofthree affiliated companies that use 800 vanity numbers. I've made extraordinary, personal effort to enter replication requests for the 888 versions ofour affiliated company's 800 numbers but now have dozens ofnumbers that were mishandled either by the our RespOrgs or DSMI. Apparently, communication between the RespOrgs and DSMI broke down and these numbers failed to be marked as "unavailable," as requested. A Summary ofEvents is listed below with details following: SUMMARY OF EVENTS Note: Alldatesfollowingare between November 1995 andFebroary 1996. Nov 1-15 Dec 29 Jan 5 Jan 11 Jan 12 Jan 12 Jan 12 Jan 12 Jan 12 Jan 12- 18 Jan 18 Jan 25 Jan 26 Jan 29 Jan 31 Jan 31 Submitted Comments and Reply Comments on Docket 95-155. AT&T-- Initial Submission CWC-- Initial Submission First suspected that the Jan 12th "second pass" deadline may be the final deadline. Learned that even the authors ofrecent articles on 888 numbers were unaware ofthe SNAC proposed Jan 12th replication deadline. Allnet/Frontier-- Initial Requests. AT&T-- Additional Requests. U.S. Sprint Submission MCI-- Initial Submission. Researched situation and confinned that the January 12, 1996 was a SNAC proposed deadline, still pending FCC approval. Sent Exparte Comments to FCC via Fed-X Got word on the extension of888 replication requests through Feb 1. Faxed announcement ofFebruary 1, 1996 replication deadline and February 10, 1996 888 pre-reservations date to all existing clients. AT&T calls about pre-reservations launch, Feb 10. Submitted final requests to Allnet at 7: 19 am Submitted final requests to MCI at 10: 15 am Cont... Jan 31 Jan 31 Jan 31 Jan 31 Jan 31 Jan 31 Feb 1 Feb 1 Feb 1 Feb 1 Feb 1 Feb 9 Feb 10 Feb 12 Feb 12 Feb 12 Feb 12 Feb 12- 19 Feb 19 Feb 21 Feb 21 Feb 23 Feb 26 Submitted final requests to CWC at 11 :02 am Submitted final requests to AT&T at 3:02 p.m. Allnet reportedly enters requests but would only confirm verbally Learned ofintemal AT&T deadline ofJan 30 Learned ofinternal CWC deadline ofJan 30 Called the FCC regarding the February 1, 1996 deadline and was told that they were leaving this interpretation to DSMI. Called DSMI and confirmed that they would accept submission .Knt Feb 1. Conference call with AT&T communicated DSMI's position on the February 1, 1996 deadline. CWC successfully entered requests and confirmed verbally MCI successfully entered requests and confirmed verbally AT&T refused to enter requests but does not advise me ofthis until late the next day. They suggested that they would help get them back for me. Called Mr. Brad BeaJ ofAT&T to discuss launch situation. 12 midnight, I call AT&T, explain the situation, and ask that some ofmy most vital numbers be secured immediately. We discover AT&T failed to take any action I discover that key numbers are on reserve by others I realized that Sprint/DSMI failed to execute our January 12, 1996 request, despite the fact that the deadline was extended until February 1, 1996. I discuss with Bard Beal ofAT&T and he reports that his efforts were overruled and my requests for 888 numbers will go in-line with everyone else. To this date, I know ofno effort made by AT&T to help. I asked Allnet, Ameritech and CWC to help recover some ofthe numbers AT&T failed to protect. I discover that Allnet failed to protect one specific number I further discovered that Allnet and DSMI failed to protect all ofthe numbers on one specific account. I advised Allnet ofthe seriousness ofthis matter. I confirmed that no mechanism exists to correct carrier screw-ups. Our 888 number unprotected by Sprint now shows "working" status, but Allnet may have unilaterally activated. Nov 1-15-- Submitted Comments and Reply Comments on Docket 95-155. By this time I was aware that the FCC was soliciting input from the RespOrgs on vanity numbers, but understood this to be primarily market research to access the "Scope ofVanity Numbers," from my reading ofDocket 95-155 (IV, D-2, Paragraph No. 40). I offered an estimate that working vanity numbers represented approximately 17.5% ofall 800 numbers, or about 1.3 million in my reply comments (see Comments ofVanity International and Reply Comments ofVanity International). Concurrently, I knew first hand that only our large clients were being contacted by their RespOrgs and asked to submit requests for 888 replications, as well as new 888 numbers. At the time, I assumed that smaller users would be polled in due course, or put on notice that they had some period oftime to contact their RespOrg to enter requests for vanity replication. I understood it to make no difference whether a request was the first or last to be collected; replication means priority over any and all reservations. So, I had no cause for concern and no knowledge ofany deadlines. Dec 29- AT&T- Initial Submission. By late December my AT&T account representative, Sharon Renfro, had heard about 888 requests and mentioned it during one ofour conversations. Sharon was unaware ofany firm deadline but said to me, "You'd better get this in right away." She faxed me copies ofthe form entitled, "Request to AT&T for 888 Number Reservations(s)" on December 29, 1995. Despite the fact that the AT&T form stated nothing explicit about "replication," it was the same form used successfully to enter replication requests for our large AT&T clients. We accepted its validity. We entered replication requests for several ofour affiliated company's most vital 800 numbers within the next few days. Still, we trusted that we had time to review our accounts and enter additional requests between now and the planned activation date. We had heard ofno final deadline and the activation date was still tentative. It is essential to point out that Sharon's comments were completely self-motivated and much appreciated, but off-hand; I had called her on another matter. No one at AT&T communicated any information whatsoever about the opportunity and ensuing deadlines to replicate 888 versions of800 numbers. Ja??ary 5- CWC- Initial Submission. Doug Vlasak, our account rep from Cable & Wrreless (CWC), was the only RespOrg agent to approach us. We submitted a form pre dated December 15, although I received it and filled it out in early January. As ofthis date, we had read the December 15, 1995 letter from Michael Wade (DSMI) to Kathy Levitz (FCC) and understood this to be the "next round" or "second pass." I trusted that ifand when a final deadline was scheduled, it would be well publicized. Further, with this one exception, our carriers had yet to serve us notice ofthis opportunity. Jan 11- Fint suspected that the Jan 12th "second pass" deadline may be the final deadline. We first got word ofthe January 24th launch date at 5:20 p.m., January 11, 1996 from industry consultant Judith Oppenheimer (Attachment AI). Concurrently, the CrowleslSIMBA News Wire article by Lynn Jones was the first public announcement of the January 24, 1996 launch to my knowledge (Attachment A2). Putting two and two together, I at once suspected that this "second pass" must, in fact, be the only pass left. Suddenly, the "second pass deadline" took on new meaning! I later learned that an industry meeting had been scheduled for the day before, January 10, 1996. Jan 12 - Learned that even the authon of recent articles on 888 numben were unaware ofthe SNAC proposed Jan 12th replication deadline. This included Lynn Jones ofCrowles Direct News Wire, who wrote the Jan 12, 1996 News Wire, and Ken Libeskind ofthe DMNews who authored several articles on 888 numbers. Lynn Jones' news wire mentioned only the January 24, 1996 pre-reservations and not the January 12, 1996 deadline. When I spoke with her this day, she was unaware ofthe replication request deadline. Ken Libeskind was unaware ofeither deadline and had just published an article January 8, 1996 which included a statement from Karen Way, an AT&T spokeswoman. She stated that, "The industry wants a 45-day per-reservation period before the new code starts to reserve 888 numbers and handle competing requests for the same numbers. That period must begin in mid-January to permit the March 1 introductions." Clearly, this pre reservation launch schedule was tentative at the time ofthe article. Replication deadlines had never been mentioned in this or any other article I am aware of Further, I contacted all ofour carriers and discovered that some were not even taking requests and most were dispelling misleading and inaccurate information (see Exparte Comments ofVanity International under, "Personal Effort") We simply did not have time with such short notice to organize our final submissions and force the issue with those carriers who had no mechanism in place to accept our requests. Jan 12 - AllnetIFrontier-- Initial Requests. We attempted to submit replication requests, but were told "the FCC hadn't ruled yet" and that no mechanism was in place to take requests. No one at Allnet/Frontier ever polled us for our protection requests or communicated any specific deadlines regarding the replication of800 numbers. Jan 11-AT&T- Additional Requests. We attempted to submit additional 800 numbers for replication. We were told that AT&T was "filing in order ofreceipt," but understood that they were not entering the data into the SMS database. This was confirmed in writing the following Monday, at my request (Attachment A3). In terms of replication, I believed a manual filing to be pointless. No one at AT&T communicated any specific deadlines regarding the replications of800 numbers, although we had submitted some ofour 800 numbers for 888 replication around December 29, 1996. We simply did not have time on such short notice to organize our final submissions and force the issue. This parallels the experience ofMr. Richard Zorn of800-Tickets. His AT&T rep, Dan Knox, said that the forms were being "filed internally" and that they were "waiting for further instructions from H.Q.," meaning AT&T head quarters (see both AttachmentA4 and Exparte Comments ofVanity International under, "Case of 1-800-Tickets"). Jan 12 - U.S. Sprint Submission. Explicit, verbal request for 888 replication ofone of my 800 fax lines was given to Jeanne Baker in customer service on January 12, 1996 around mid day. She was not immediately clear on what I was asking for and I stated, "This is not a request for a new number. I'm asking you to protect the 888 version ofthe 800 number I have with you (i.e., Sprint). Do you understand?" Jeanne indicated that she then understood what I was asking. I went on to say that, "Time is ofthe essence and today (January 12, 1996) is the deadline. We must get this in today." She hadn't heard of any deadline, but agreed that she would attend to this at once. Jeanne returned a written confirmation dated January 12, 1996, at my request, on Monday, January 15, 1996 in the form of"Request for Toll·Free Number" (Attachment AS andA6). This Sprint form had no mention of"replication," but neither did the AT&T form which I knew to be valid. No one at Sprint ever polled us for our protection requests or communicated any specific deadlines regarding the replications of800 numbers. Jan 12 - MCI-- Initial Submission. We verbally submitted several prime 800 numbers for replication, but had no idea ifthey, in fact, would be transmitted to DSMI. No one at Mel ever polled us for our protection requests or communicated any specific deadlines regarding the replication of800 numbers. Jan 12- 18- Researched situation and confirmed that the January 12, 1996 was a SNAC proposed deadline, still pending FCC approval. I learned that 800 assignment levels had held around the 90% level and that we would "not run out until June," during a phone conversation with Michael Wade, president ofDSMI. He had communicated this fact to the FCC within the last few days. Mr. Wade also explained that the FCC had yet to grant final approval on the January 24, 1996 launch plan, but that his staffwas ready to go. I gathered that "the industry" had taken unilateral action to cut offreplication requests and that the entire SNAC proposal was pending approval. Jan 18- Sent Exparte Comments to FCC via Fed-X. I asked that the FCC require "the industry" to abandon the January 24, 1996 launch plan and reopen replication requests to the unsuspecting, uninformed public. I asked that the RespOrgs be required to advise all subscribers oftheir opportunity to replicate _. not just their biggest customers -. and recommended that the new deadlines allow ample time for users to (a) be put on notice, (b) submit their requests, (c) change to carriers, ifnecessary to protect their interests, and (d) confirm accuracy ofsubmission (See Exparte Comments ofVanity International for further details). Jan 25- Got word on the extension of888 replication requests through Feb 1, 1996. Once we learned that the FCC had reopened replication, we took urgent action as we, and others, were only afforded a brief 5 day window to enter requests. Clearly there was no time to switch carriers ifour present carriers were uncooperative, or confirm the accuracy ofour submissions. I was astonished that the FCC allowed "the industry" to push this timetable forward in view ofMr. Wade's findings. However, we were pleased to have even this briefopportunity to protect the vital interests ofour clients and affiliated companies. Despite the reopening ofthe SMS database for replication requests, not one ofour existing carriers advised us ofthis new deadline and only AT&T advised us ofthe February 10 launch date. We spent several days organizing our submissions and advising our existing clients ofthis ·'last chance" opportunity. All ofour RespOrg contacts were unilateral, as we were "polled" by no one. Jan 26- Faxed announcement orFebruary 1, 1996 replication deadline and February 10, 1996 881 pre-reservations date to all existing clients. Further, I faxed a press release to several major publications in hopes that they might provide some publicity and alert unsuspecting 800 users across America. Press releases went to Business Week, Crain's Chicago Business, The New York Times, The Chicago Tribune, The Chicago Sun Times, The Wall Street Journal, The Washington Post, The USA Today and others. To my knowledge, none ofthese publications covered this urgent matter. Clearly, this information would have been more warmly received had a press release come from AT&T, MCI, or Sprint. Jan 29- AT&T calls about pre-reservations launch, Feb 10. Sharon Renfro, my AT&T account rep, took it upon herselfto leave me a voice message regarding 888 reservations beginning February 10. There was no mention ofthe new 888 replication request deadline and, as I later discovered, Sharon had no knowledge ofthe new FCC deadline or even that AT&T was again taking replication requests. Apparently, AT&T management chose to disseminate only some ofthe information contained in the January 25, 1996 Common Carrier Bureau memo that reopened replication. We were neither notified by AT&T ofour right to enter requests nor ofany FCC or internal AT&T deadlines. We relied entirely on the January 25, 1996 Common Carrier Bureau memo (Report No. DC 96-3), ofwhich we obtained a copy. Jan 31- Submitted final requests to Allnet at 7:19 am, MCI at 10:15 am, ewc at 11:02 am, and AT&T at 3:02 pm. All were initiated by a faxed written directives (see Attachment A7 for fax log) and followed up by phone calls to confirm receipt. Each request referenced the relevant section ofthe Common Carrier Bureau memo stating the February 1, 1996 deadline. All were received by someone within each organization who took the initiative to foHow-up on my request. Each directive included a request for written confirmation of(1) "Receipt ofthis request and, once entered," (2) "Confirmation that each and every number was correctly keyed into the database, accepted by DSMI, and afforded protection." We further stated that "accuracy is ofthe essence" and that we must rely on the carrier as we would not be able to confirm accuracy prior to the FCC deadline ofFebruary 1, 1996 (see Attachment A8 for a sample directive). Jan 31- AlinetIFrontier reportedly enten requests but would only confirm verbally. My conversation was with Carrigan Gatewood, 800 Product Manager, who called early in the day to confirm receipt ofour faxed directives. She questioned why I was requesting replications, but agreed to submit my requests. When asked for confirmation in writing she stated, "If! confirmed everything in writing I wouldn't get anything done around here. If I trusted that our Allnet requests were in capable hands and went on to other urgent matters. Jan 31- Learned ofintemal AT&T deadline ofJan 30. Sharon Renfro ofAT&T received our directive on January 31,1996. She called back to saythafshe had looked into this and that AT&T's internal deadline had passed the day earlier, Jan 30, 1996. I told Sharon I had "no idea ofany other deadline," and needed to check into this. Jan 31- Learned ofinternal ewc deadline ofJan 30. Ms. Melissa Strickland, 800 specialist, received our directive and advised me that the Cable & Wireless' internal deadline was Jan 30, 1996 and that she had already submitted their requests. No longer surprised, I accessed that the problem was that the replication requests were submitted via diskette and shipped overnight. The RespOrgs had assumed that DSMI was to have requests in-hand by February 1, 1996, so they backed out 2 days for the typing and shipping. The 5 day window had now become 3! Jan 31- Called the FCC regarding the February 1, 1996 deadline and was told that tbey were leaving this interpretation to DSMI. I spoke with Irene Flannery ofthe FCC and explained the situation, specifically that we submitted our requests January 31, 1996 but that some RespOrgs were not accepting them due to their interpretation ofthe deadline. She checked into this and advised me that the FCC would defer this matter over to DSMI. Feb 1-CaUed DSMI and confirmed they would accept submission sent Feb 1. Mr. Anil Petel spoke for DSMI and allowed me to refer his name to the RespOrgs for confirmation. I believe he, too, spoke with the FCC to confirm that DSMI had authority to decide this matter. The language read, "pass these requests onto DSMI no later than 11:59pm., eastern standard time, February 1, 1996." Mr. Petel's interpreted this to mean that the RespOrgs needed only to Fed-x or postmark their requests by the deadline, not have them in handby then. In my conversations with Mr. Petel I also confirmed that DSMI had no authority to accept my requests directly. I, therefore, had no other option but to rely on my current RespOrgs for the submission. Further, the submittals had to be in an industry defined format for which I had no model. Feb 1-Conference call with AT&T communicated DSMl's position on the deadline, as relayed by Mr. Anil Petal. AT&T still had time, at this point in the day, to prepare our submission. Mr. Beal confirmed the FCC deadline directly with Mr. Anil Patel, but advised me that only Jonnie Bond oftheir Cleveland office could put the submittal in the required format. They were waiting for her to call. Having no word by 5:03 p.m. eastern, I faxed a note to Ms. Jonnie Bond c/o Sharon Renfro stated that we have two choices, (1) confirm the submission or (2) write a letter acknowledging my request, stating the reasons AT&T is unable to comply, and state AT&T's willingness to submit after the deadline if allowed by DSMI (see Attachment A9). Feb 1-ewc successfully entered requests and confirmed verbally. This was a supplemental submission, as they had already send a diskette Jan 31, 1996. Subsequently, I've checked several ofthe numbers and, thus far, have found no inaccuracies. Feb 1- MCI succasfully entered requests and confirmed verbally. This was done via an electronic submission planned for late evening February 1, 1996. I was, however, astonished to learn that no one in their 800 customer service group, including Nancy Lingl and Jodie Bequette, seemed to know nothing about this process. It took a series ofphone calls to explain my needs until, finally, I had an after-hours voice message that my numbers were being included that night's transmission to DSMI. Subsequently, I've checked several ofthe numbers and, thus far, have found no inaccuracies. Feb 1- AT&T refused to enter requests. Despite the personal efforts ofMs. Sharon Renfro and Mr. Brad Beal, AT&T 800 specialist Ms. Jonnie Bond refused to communicate our January 31, 1996 requests to DSMI claiming that we entered our request after their internal deadline, January 30, 1996, ofwhich I was never advised. I was unaware ofthe outcome until late the next day, February 2, 1996. At that point, Mr. Beal suggested that he could only help me get the numbers back on February 10, 1996. I asked Mr. Beal to write a letter summarizing the events that transpired (Attachment A10), as I had not had so much as a message from Ms. Jonnie Bond. Feb 9- Caned Mr. Brad Beal to discuss launch situation. Mr. Beal knew ofno recourse other than attempt to secure the numbers at the launch. Mr. Beal wrote a note to AT&T's 800 reservations group asking that our 888 requests be placed at the front ofthe list. He left early, however, and I was unable to reach him to discuss details, despite repeated calls to his direct line. Feb 10--12 midnigbt, I call AT&T, explain the situation, and ask that some o(my Dlost vital numben be secured immediately. The customer service representative said she could only pass my requests along. Feb 12- We discover AT&T failed to take any action. Having checked several ofour numbers, we noted that those requested were still not reserved and other numbers were on-reserve by various carriers. Feb 12 - I discover that key numbers are on reserve by othen. This included one of the AT&T numbers I specifically requested Saturday night and the Sprint number that, up until now, I had assumed was protected. Our unprotected Sprint number was on-reserve by Allnet. Feb 12- I realized tbat Sprint/DSMI failed to execute our January 12, 1996 request, despite tbe ract that the deadline was extended until February I, 1996. Since the number was on reserve by others, I didn't call Sprint; it was already out oftheir control. Feb 12- I discuss with Bard Beal ofAT&T and he reports that his efforts were overruled and my requests for 888 numben must go to the end ofthe line like everyone else. I was afforded no priority despite the sequence ofevents that led to our AT&T numbers being unprotected. Feb 12- 19- I a.ked Allnet, Ameritech and ewc help recover some ofthe numbers ATAT failed to protect. To this date, I know ofno effort made by AT&T to help. Feb 19- I discovered that Allnet and DSMI failed to protect one ofour numbers Feb 21- I further discovered that Allnet and DSMI failed to protect all ofthe numbers on one specific account. Dozens ofnumbers were left unprotected by this error. Feb 21- I advised ABnet ofthe seriousness ofthis matter. In my discussions with Elaine Wright on another matter, I advised her that none ofthe numbers on our one account were protected. I told her this was a serious matter and asked her to pass this on to Carrigan Gatewood, the 800 specialist who processed our requests. No one called me back and I was unable to call them during the next two days. Feb 23- Confirmed that no mechanism exists to correct carrier screw-ups. Mr. Anil Petel explained that DSMI would do anything they are asked to do, but there is currently no way to correct RespOrg or DSMI mistakes. Feb 26- Our 888 number unprotected by Sprint now shows "working" status, but Alnet may have unilaterally activated. We donlt know what Allnet communicated to the customer who, presumably, reserved our number-- the number that Sprint failed to protect. We do know for a fact that Allnet took unilateral action to activate several new, unrelated 888 numbers we had them reserve for us, and probably did the same with others. We found this odd, although we have no objection to our new 888 numbers working next week. However, ifour unprotected number can not be reclaimed because it is now in "working" status, Allnet should first be suspected oftaking unilateral action without customer directives. They certainly did so here. Based on the forgoing declaration I request that the FCC direct DSMI to reclaim the attached list (Attachment Bl and B2) of888 numbers and mark them as "unavailable," as requested. These should have been just as "unavailable" on February 10, 1996 as, say, 888-356-9377, 888-265-5328, and 888-225-5288 (i.e., 888-Flowers, 888-Collect, and 888-Call-ATT), pending FCC ruling. Vallity International 2020 Lincoln Park West Suite 161 Chicago, IL 60614 (312) 871-6565 Voice (312) 871-3291 Fax Loren C. Stocker Interactive C8'IIBrandf'M) 8rIdfJing the~.......lIlriflllng £ T8lecom 160 East 26th Street. PH6E New York. NY 10010 (phone) 212814-7210 (fax) 212 184-2714 (emaH) Producer.pipeline.com January 11. 1186 FLASH MEMO I 8pOIca with ...Wade from OSMI today. "...tOO riiplk:Miana requeet1J ttl. tl'MJ Re8p Orge 8ubmitted 8S Y factor fil88 aNI the~...onff numbers for wI\icI\ tomorrow is the deadline· are to be crad.d _ Rot available- for the general 888 relefJ5e. and early reservation Pf'DCIt" - which st.arts January 24. Rap Orgs were notified by written report on January 5 of which of their eubml.,i0n8 were accepted - and which were not. Could have been rejected for coding error, whatever. lbere Is otMouIIy plenty 01 room for Resp Orgs wdisa'eUon". and for those ..........bIni,.ions that cldn't get in on..fnt pan to fall thru the crBCks. There is no reporting processing between OSUI and users - only OSMI and ,,"p Orgs. I.Mae that you cal )lOU'" Res.p Orgs tomorrow and request a written copy of ntpOI1a pertaining to your numbers. IC8ep in mind. th_ num........ coded for ut-aide, but not for _eignment to you - not unit mandated by the FCC rUlemaking. Mike spoke with Mary DltLuClllF'CC )'......,. She said she knoMs ..rulemaking is 8 top priority. M*nawI8dged that its front burner~she's "working on it." Gave no indication of when the rutem_ing is to be released. Attachment At IOO-NUMBER REPLICATION DEADLINE NEARS By Lynn Jones TIme is running out for direct marketers to reserve the 888 equivalent oftheir toll-free 800- number. On Jan. 24, Database Service Manalement Inc.? the Piscataway. NJ-based company designated by the Federal Communications Commission to manage the country's 800-number database, will begin filling requests for new 888 numbers. At the same time, the Federal Communications Commission wu reported to be preparinl a ~on the entire IOO-number replication issue ? but those reports could not be confirmed ? cte.d&ne,. Meanwhile companies have apparently started the 800-number replication process in the absence ofany clear regulations. The new 888 toll·free number was aMounced late last year when industry officials detennined that available 8oo-numbers would be depleted by early 1996. The introduction of888 adds more than 7 million toll-free numbers to the till. But the new three-<tisit code does not come problem-free. "Businesses who have not been advised about and guided through the replication process by their carrier are losing out on an Ullpl'eCedeated opportunity to protect their interest," said Judith Oppenheimer, president of telemarketing consultancy Interactive Ca1tBrand, New York. Companies that do not replicate, Oppenheimer noted, run the risk ofhaving to pay for misdials from people who intended to dial an 888 number but dialed an 800 number by mistake. Also. a company's reputation is at risk ifconsumers mistake a number to be that ofa more well-known company. To date, lonl distanee carriers and other companies that reserve phone numbers known as I.apOrp (Responsible Organizations) have asked DSMI to replicate or set aside roughly 219.000 I88-IaJmber equivalents. r1J :/'-I?tf<,. 9~9(t rl,~<]0,.) :$~fAfJt I.. t)fl Jd ~I A rfc a pr"Q' Attachment A2 JA't 1S'961e~28AI'l An WJRTH OHIO F .1 4J /-/~-16 fAX5 1 HEET FROM: 0~ AT&T C,::>aaercial Kark.eta .. 'M?.:.a4d:~i7/3;k'l1 . ?MOII-l-. ~ __ftc+T,,:~s1 Attachment A3 ~""'-,. "tl/lS/l'" 11:59 2014891&&1 '" ??__.,_._~_,..-_---ZORN....-:.-;.CCJM.tlICATI~ pta 01 8 00 -.s;r~-79 0 7 - Cc..)l{'1)~O ~~~r.( /?"/LI/Alfa7R1i'~I-I.~·,;' 121l/l/~_2?~It'__ .... $A.c.IMJSi!h/~t....Df.~l,.J~A?to----:::-...:.-....-.,.:.~-:.:-; PtJOF/~'f4)IAJ1't«AJ~lOwf/ 1171- (=61( Fi);CrHtVlI~r..t-~ MtO".,.-.....~Q · AvQ-~~77C.,JS fA~tC;rl.t.-. DIll; .-.2-1....IS~~t_ 3'1J.. -.s38 7 R...,- ue s-1''''-' -"I' f.:t_C~J<JdJ~'&-l)q.,.J~()~;47=>'- 1- J).--; . ~lluJf4)«)~8'¢o ? _ -.c. . -~-: ~ 'fOr&.... 'IJJdL. .....~,,~t:M;.tdQ__ 44ft?~~~z;,~dr.' ..- -= : . : =-Ql~Z~:i;rt'~_~. ._----- ------_..---_._-_.._ ..._" ..... ---_.-----:-----_.--_ ,....? _____..J.~"....J.~~~ :::-~:~::--=~~ ... .. -_.._-_. ------_._--_..- . Attl(!hment A4 .--~.......~...~...,~littUflClt t":'.~; .1/1~10131 SPRINT BSG GOLD~312-871-3291 FAX COYEft LETTER NO.39? P901/002 MOfII: .. s:iJme.+~~ ~,MIl[ CONTAQTt:'--- _ .: OR 214-801-1078 0GI1fEft't:....~__ Attachment AS 01/15/96 10:32 SPRINT SSG 00...0 -+ 312-871-3291 ? Sprint. Business REQUEST FOR TOlL FREE NUMBER I~and..,.....1bI".....n~s)JeSeMldfOrnteltl.....my~lindIortWfCOl~n"* .....""8pMI~..0Dmpuy LP??? OellMllr.~edPartNnh(p (Sprinij, will tl'deIWW kI pnMde "'1$AIle ..........,.1)to..... It.s....guaranIeed" *l*SfiCrunbefts)~.nor.~lime U wfIich""'U ......,..wi! be instDlIed a1wJIot opeabIe. I.....~and 1IlP'IIIlI'"~uNof tNsM.-fU'IIbeI{I)IMIcn my""-ls~~~MIl balcnfNJ .....~Is~18dIe II rrrt OMI riak IWId Ihtrtby hold SPIin' hInnIeIa trom~and III IIbIIIty ........." tram my ............or aIw UH of~numt.{?? priorIe IUClh ftlIaI&aIiOn. opnbilt)'. and end~. MDnta-r. I undint8nd Md...'*N bar*. ,...n or he» of an loll Ftee number nHNed for or aaigned \0 Me is unUhc*ad and...flat 10 bQI'Ier. reset DI trade my ltX1 Free numtM. " ._--'..~--'------ ._--"-~--"'----- ---"----'------ ~._~---~~._-_.,----- ---"----,_.__.._--- --_.----'~--,-- --_._--_._---'------ ADDRE882:01\;""--~~-~-_ Cl1'Y: Cb"¥~---ST:.I1- ZIP: foorc 11:...__ PAlMAAYCON'TACT: PHONE: (__~)__ ,__" _ =:.::.us~_~E,(__->._~__ - i IAlES AEP:~_.SSN; "_~._ SAlES REP PHONt!: <__-J " _ CADER OONTACT: or-M'""- PHONE: <-- _ --....) 4 _ ORua. ADlMLlltSlAAllON~: !N1l:AEtJ8V:_~__~~__~-_ .L..__-~_=_=_==OA:=J'E~;- Attachment A6 .AiJV·-' Jan 30, 1996 11:41pm Z' Fine 2 Complete Ameritech Wisconsin Jan 31, 1996 12:~,end Fine 1 Complete Harry Olsen Jan 31, 1996 :19 Send Fine 5 Complete Allnet/Frontier Marketi Jan 31, 1996send~Fine5 Complete Allnet/Frontier Marketi Jan 31, 1996 0:15a end Fine 5 Complete MCI-- customer Relation Jan 31, 1996 10:,4_~sendC~~ne1 Complete Mark D. Olson Jan 31, 1996~F1ne 6 Complete CWC-- Customer Service Jan 31, 1996 : pm Recv Std 1 Complete 818 331 1111 Jan 31, 1996 1:13pm Recv Std 3 Complete 614 766 7830 Jan 31, 1996 1:17pm Send Fine 2 Complete AT&T-- Wisconsin Jan 31, 1996 1:20pm SendF~~ 2 Complete WEPCO Jan 31, 1996 1.~Fr.. 3 Complete Allnet-- Select Service Jan 31, 1996 3:02pm nd I Fine 5 Complete AT&T Sales Jan 31, 1996 ·22 - Send :tt.s Fine 4 Complete AT&T Sales Jan 31, 1996 : 07 1/Fine 1 Complete ATT-- Customer Assistan Jan 31, 1996 :44pm sen~Fine 2 Complete Zorn Communications Jan 31, 1996 8:44pm Recv~'Std 1 Complete VIA FAX Jan 31, 1996 9:27pm Send Std 2 Complete Mark D. Olson Jan 31, 1996 11:~4p'mSendS~d,2 Complete Mark D. Olson Feb 1, 1996Cn:01~selrct·j:;~F1n#<;72 Complete AT&T Sales Feb 1, 1996 8155am Send Fine 3 Complete Gottlieb & Associates Feb 1, 1996 12:49pm Send Fine 6 Complete CWC-- Customer Service Feb 1, 1996 1: 47pm Send Fine 6 Complete CWC-- Customer Service Feb 1, 1996 1:52pm Send Fine 5 Complete MCI-- JODIE BEQUETTE Feb 1, 1996 2:24pm Send Fine 4 Complete MCI-- JODIE BEQUETTE Feb 1, 1996 2:29pm Send Fine 4 Complete MCI-- Customer Relation Feb 1, 1996 2:36pm Send Fine 2 Complete Zorn Communications Feb 1, 1996 4:01pm Send Std 1 Complete CWC-- Customer Service Feb 1, 1996 4:02pm Send Std 1 Complete MCI-- Customer Relation Feb 1, 1996 4:03pm Send Std 1 Complete MCI-- JODIE BEQUETTE Feb 1, 1996 4:06pm Send Std 1 Complete AT&T Sales Feb 1, 1996 8:57pm Send Std 2 Complet.e Interactive CallBrand Attachment A7 Attn: Ms. Jonnie Bond c/o Sharon Renfro Re: Replication request -I / ~~'!£, Thank you all again for all your efforts. At this point, we have two choice: * If you're able to sUbmit, please confirm that you've done so. * If not, please write a letter stating the following: Recipt of my request yesterday Reason you are unable to comply Willingness to submit early next week, if granted permission to do by DSMI; and that you have no objection to us doing on our own by seperate submission (I realize that is against the "rules"). The key here is that WE made the deadline, but logistic got in the way. Perhaps, DSMI will add our requests given the circumstances. I now have to leave the office. Please fax reply to 312-871-3291. Best Regards, Loren Attachment A9 January 30, 1996 To: MCI Customer Relations Re: Replication Request Corporate ID # Following is a list of800 numbers we would like you to protect. I apologize that this is in your hands with less than 2 business days to go until the FCC deadline, but as you may realize no one at MCI had ever informed us ofthis process. As our agent and RespOrg for the attached list of800 numbers, we hereby request that you enter "protection requests" for the 888 version ofeach ofthese 800 numbers into the national SMS/800 database. This action will mark the 888 version ofthese numbers as "unavailable," pending the FCC decision on replication. Given that the deadline for such action is Thursday. February L 1996 per REPORT NO. DC 96-3 (applicable section follows), we request that you enter these at once. This request for protection is a matter ofvital interest to our firm and we require that you send full, written confirmation of: (1) Receipt of this request and, once entered, (2) Confirmation that each and every numbers was correctly keyed into the database, accepted by DSMI, and afforded protection. We understand, ofcourse, that the FCC has yet to rule on whether we will be afforded right offirst refusal and, ifso, whether there will be a cost Further, we understand that Mel can not guarantee that the outcome ofsaid ruling will be in favor or replication. We only ask that you protect our interests pending this decision. We plan to doubled check the status ofthese 888 numbers by independent means, but will not be able to do this prior to the FCC deadline ofFebruary 1, 1996. Accuracy is of the essence. Please ensure that these requests are entered correctly and that any mistakes are uncovered and corrected at once. Please fax confirmations to our office at 312-871-3291 as soon as they are available. Attachment A8 fEB 19'96 132: 39PM ATT~THOHIO OATs.T Fib DU9S P.l 1.GnII Stoeka' IDEDdS,.-. 2000 H.1t.8dI1I CbkaplL60614 Dar Mr. StoebI': TID It'tter" to darIft tI.dIalaot~recardIDI yow100 D1UDben tIM r"reSoD or..888 ftIlity uumben. OD MODday JUl19t1ll996 Shatoll RtId'ro ATilT~mer terYb nV' left.voke 1lU1II .......for Lol'ell Sloc:br stat1ac that tile most nceut lDftmDadoD recard1D1888 Ilcambtts Js that the rela"Yadou ,..ould begIa InF~bUt woald DOt be limed to eust.)mtrt till March 1. Mr. Stocker faDd....CO"..IDI!IDO mel .l1st or 888 rtqutD 0111-31·96 aIoq wtth ? cl1pp1q satlDe tile FCC '"acl1iDe for 888 requests wAS to be 02-1-96 at 11:59 p..-. Sbaroll thea. delivered the 1bt to Jolm Formal who is our 800 spfdallst. Jolm It8ted that tIla AT&T deN'JCnt for npnaiollreqatstl was 1-30-96- SharoIl:R.eD1ro theDtaJIl~Mr. Stockel' to aplaln the sltuatlou with her rapenllorBrad Beal OD theIlIlt with bet. Mr. Stocker providtd US with the aa.m.e ofMr. PatEl at DSMI to CDIltac:t ID an etrort to rlllene the nmnbers after the AT&T deadllntbut 'beIon the F.C.C dadHnL Upon aJ1IDI Mr. Pliteille erpIaIned that be wuld not procfAI tb8 numbers UJIIesI they "ft'elormatted OIla.JI*Wsprad sbecL Mr.Pate1 abo explaJDN to Mr. StocUrud Mr. Beal tIWD6MI wouIcl accept the replicadoD nquestilO 10Dl at they wen: aeua by die deadUDe 0102-01-96. Tbk IPft&CJsbltt coald bt produced byJ~In our QeveUd otJb. Mr. Beal eaDecllollr_ and left bar ? voice man DIfSSI&I aplafDlag our sltuadoIL JobImie eaIIetl budat1IpIIt.x:lmlRIy '-:00 p.m. to upIaiD that AT&:T could DDt IIIId out the __fw the 888 Dum...beeaUR ofthe kplsdpDlat10dS whJch we may Incur from ~the nq1lllltlafter our cJeeefllne. At thls point In timeAT~kThM made all effort to relIlr'Ve the lost 888 Dumbers for Mr. $todm-however this adIoli will MI~teethaitb~Dmnbers wiD be raerved for hfs "Mia... Attachment AIO ALLNET/FRONTIER 233 -6463 233 -8783 353 -5835 353 -9772 385 -5266 385 -5538 426 -8725 434 -8626 463 -6869 463 -9426 465 -8967 536 -6927 568 -3233 583 -8426 642 -7683 646 -4353 664 -6785 667 -9343 732 -8774 735 -3774 787 -3725 794 -7724 843 -3655 868 -2634 878 -3233 924 -8673 924 -8673 932 -7328 933 -6312 SPRINT 624 -6286 ATTACHMENT BI AT&T 286 -7688 368 -6973 438-7378 552 -6222 632 -7639 646 -4636 774 -2353 932 -4626 947 -2667 245 -5262 247 -7245 365 -8624 367 -4467 466 -2297 494 -4832 826 -4895 843 -4622 233 -7296 241 -7499 243 -7328 243 -7742 273 -9296 334 -4443 367 -6394 732 -5767 732 -5768 244 -3732 438 -4825 463 -9426 586 -4532 438 -7446 726 -8274 772 -2336 826 -4893 223 6463 742 -8363 746 -6346 872 -4792 928 -3786 AITACHl\fENT B2 Exhibit 2 DECLARATION Robert H. Tate, declares under penalty of perjury as follows: 1. I am President and the owner of Genesis Two, Inc. ("Genesis"), an Oregon corporation, with offices located at 1089 Medford Center, Suite 247, Medford, Oregon 97504. 2. Genesis owns and operates a cut flowers and gift delivery business under the name of 1-800-BLOSSOM, serving customers on a nationwide (all 50 states and the District of Columbia) and international basis. In contemplation of commencing its flower delivery business, Genesis purchased the number 800-256-7766 (800 BLOSSOM) from a Louisiana tire company, paying several thousand dollars for the number to be assigned to Genesis, in addition to other start-up costs for the business. Genesis commenced its 800 BLOSSOM flower business on September 1, 1995. Genesis has filed with the United States Patent and Trademark Office, an application for registration of the mark 800-BLOSSOM and an intent-to-use application for registration of the mark 888-BLOSSOM. Both applications are pending. 3. In early December 1995, I contacted Sprint with the intention of transferring the 800-BLOSSOM account to them and to obtain an additional 800 number. The 800-BLOSSOM account carrier was LDDS, the carrier originally selected by the tire company. Unhappy with LDDS' inattentiveness to my prior calls inquiring about pricing for dedicated service and caller ID services for 800 numbers, I contacted Sprint. In requesting a new 800 number, I was informed by the Sprint representative that there was a moratorium on the issuance of new 800 numbers but that in 1996 Sprint would be - 2 - offering a toll free 888 code to augment the diminishing available 800 numbers. I inquired of the Sprint representative as to whether Genesis could reserve the number 888-256-7766 (888-BLOSSOM). I was informed by the Sprint representative that Sprint had previously collected a list of customers that were interested in reserving 888 toll free numbers which corresponded with their respective 800 toll free numbers but that the list was being compiled for the purpose of informing the Federal Communications Commission (I1FCCI1 or I1Commission l1 ) as to the number of 800 customers interested in reserving their corresponding 888 number. I requested that Genesis be added to the list. The representative indicated that the list had already been submitted to the FCC and that Sprint was no longer adding names to the list. Prior to my conversation with the Sprint representative, I was not aware that the FCC had initiated a proceeding concerning the creation of an 888 toll-free service. 4. On the same day that I spoke with the Sprint representative, I contacted the FCC and spoke at length with Brad Wimmer, an FCC attorney. The telephone call lasted approximately 30 to 40 minutes. I relayed to Mr. Wimmer my conversation earlier in the day with the Sprint representative and my concerns of being potentially excluded from the 888 reservation list. Mr. Wimmer explained to me that the FCC had not reached any decision in the 888 matter nor instituted an order with respect to the implementation of the service. Mr. Wimmer further indicated that if the carriers were compiling a list of customers interested in reserving numbers in the prospective 888 service he was not aware - 4 - 6. Following up on Mr. Wimmer's suggestion, every week or two weeks during the period of early December 1995 and through January 26, 1996 I contacted several carriers including my own carrier, LDDS (who I contacted on approximately six occasions), to inquire about the status of reserving an 888 number.. I was informed each time that I called, that 888 numbers could not be reserved as yet, as the FCC had not yet issued its decision. In each of the calls, including my calls to LDDS, I also inquired about reserving the corresponding 888 number to 800-BLOSSOM and I was routinely informed that lists were previously compiled and that Genesis' request to reserve 888-256-7766 could not be added to the lists since the lists were cutoff and only compiled to inform the FCC as to the interest in the reservation of an existing 800 customer of a corresponding 888 number. The carriers also informed me that the FCC had not reached a decision relative to the 888 service but that a decision was expected in March, 1996. At no time was it portrayed to me by any of the carriers I contacted, including Genesis' carrier, LDDS, that the previously compiled lists would be used or utilized as the list for the inclusion of numbers to be protected once the Commission issued its decision. 7. Based on my conversation with Mr. Wimmer I expected that the FCC, which had not yet issued a decision in the 888 service, would not utilize the reservation lists of vanity 800 subscribers seeking to replicate their number in the 888 service previously compiled by the carriers. As previously stated, such lists I had been told by the carriers were already cutoff by the carriers (and - 5 - not by any FCC imposed deadline) and were purportedly compiled by such carriers for the express purpose of informing the FCC of the interest of existing 800 subscribers in the proposed 888 service. 8. On January 26, 1996, unaware of the Commission's release on January 25, 1996 of its Report and Order in the 888 toll free service matter, I continued checking with carriers as suggested by Mr. Wimmer earlier. From my horne I contacted AT&T to inquire if I could reserve an 888 number and was informed that I could not. I also inquired if my 800-BLOSSOM number could be protected from someone else reserving the number with an 888 access code. The representative's response was that no decision had been reached by the FCC with respect to 888 service and that since the FCC had been on a lengthy furlough, it was backlogged. According to the representative, AT&T had been informed by the FCC that it would delay its decision regarding the 888 service until April. The AT&T representative appeared intelligent and well informed with respect to the 888 service and consequently, I did not immediately double check this information with any other carrier or the FCC. 9. In early February I was scheduled to leave the country on a two-week trip with my family and in anticipation of this trip, on February 5, 1996, I contacted AT&T again and spoke with a representative named Scott. I again inquired about the ability to reserve an 888 number and was informed that I would not be able to reserve an 888 number until February la, 1996. I also inquired about replicating Genesis' existing 800-BLOSSOM in the 888 service and was informed for the first time that the period for reservation - 6 - had passed, that February 1, 1996 was the deadline to request protection of an 800 number. Needless to say, I was taken aback by this information and cancelled my travel plans. My family has since returned from the trip I was to take with them. 10. After my conversation with AT&T, I immediately contacted the FCC and spoke with Ms. Irene Flannery (212/418-2373). I explained to Ms. Flannery that in my prior call to AT&T, I was informed for the first time that the period for seeking to reserve my existing 800-BLOSSOM number on a replication list in the proposed 888 service had passed without my company or me being notified or contacted by Genesis' carrier or its "RespOrg" (a term I was not aware of previously). Ms. Flannery stated to me that the FCC's order speaks for itself and that she would not advise Data Management Services, Inc. ("DSMI") or a Responsible Organization ("RespOrg") one way or another on adding my request to the replication table. Ms. Flannery further stated that the FCC made its decision to extend the polling of customers to be added to the replication list for one week since the SMS/800 Number Administration Committee ("SNAC") had assured the FCC that the carriers had adequately polled all their customers over the previous three to four months. I informed Ms. Flannery that based on my experience of having never been notified or polled by Genesis' carrier and despite repeated efforts on my part to be added to a list which I was consistently informed was not an FCC authorized replication list and was being compiled only for FCC informational purposes only, the SNAC assurance was false and that - 7 - a lot of people will be upset. I asked Ms. Flannery if there was any way for the FCC to authorize an addition to the list. Ms. Flannery reiterated that the order speaks for itself and that the only reason the FCC established the February 1, 1996 deadline for replication set asides was to permit the inauguration of the 888 service on March 1, 1996, the date demanded by the carriers. She also indicated that DSMl would need the period of February 1st to February 8th to complete the replication list in order to remove the numbers which will be "unavailable" from all other numbers which would be available for early reservation scheduled to commence on February 10th. Ms. Flannery indicated that I should contact DSMI for further information. 11. After my conversation with Ms. Flannery, I immediately contacted DSMl and spoke to Michele Wade. Ms. Wade gave me the primary contact names of major RespOrgs. She also informed me that DSMI could not accept any other requests for being included on the 888 replication list. I informed Ms. Wade that it was critical for Genesis to have its 800 number included on the replication list. Ms. Wade apologized but stated that unless the FCC directed DSMl to include Genesis 800 number on the list, DSMl could not add anyone to the list. 12. Following my conversation with Ms. Wade I contacted MCl, a RespOrg, and spoke with Ms. Linda Opacic. I had been informed by Ms. Wade that Ms. Opacic was the head of SNAC. Ms. Opacic conferenced Ms. Flannery from the FCC. Both Ms. Opacic and Ms. Flannery took the position that the FCC's Order does not allow a - 8 - RespOrg to submit a request for replication beyond the February 1, 1996 deadline. Ms. Flannery further stated that the FCC would rule on a request from Genesis to be added to the list but that she doubted if a RespOrg submitted a request to DSMI, DSMI would accept a request to add a number to the replication list. Ms. Flannery reiterated that the FCC Order speaks for itself and that the FCC would probably not alter its decision. I then requested Ms. Opacic to prioritize my request for 888-256-7766 so that when the early reservation period opened on February 10, 1996 at 12:01 EST, it would one of the first requests made. Ms. Opacic informed me that I would need to speak to Larry Lee at MCI. I placed a call to Larry Lee and left a message for him to call me. 13. At the end of my conversation with Ms. Opacic and Ms. Flannery, I contacted Sprint and spoke with Ms. Susie Cotter. I requested that Sprint prioritize my reservation request for 800 256-7766 and she informed me that Sprint would and that Sprint would contact the company that had the reservation request for the number to notify them that Sprint was nullifying the request in favor of Genesis' request. Ms. Cotter indicated that Sprint was sympathetic to customers like Genesis that had not been notified of the FCC's "hasty" decision. Ms. Cotter requested proof that 800 256-7766 belonged to Genesis and I provided it. 14. Immediately following my call to Sprint, I called Sonja Coburn with LDDS, Genesis' carrier for its SOO-BLOSSOM number, and spoke with Ms. Coburn's assistant Laurie Whitten. Ms. Whitten informed me that LDDS initial replication schedule was as follows: - 9 - First Cutoff: November 30, 1995 Second Cutoff: January 5-12, 1996 Third Cutoff: January 25-February 1, 1996. Ms. Whitten stated that LDDS had approximately 10 to 15 customers, who were not notified by LDDS and had become aware of the February 1, 1996 replication deadline. I informed Ms. Whitten that LDDS needed to place Genesis on the replication list. Ms. Whitten indicated that LDDS was working on submitting requests to DSMI that LDDS received prior to the February I, 1996 deadline but which LDDS did not timely submit to DSMI, however, I would have to speak to Sonja Coburn concerning this matter. I requested Ms. Whitten to prioritize my request for 888-256-7766 and place my request to the front of LDDS' requests for submission on February 10, 1996. 15. At approximately 5:45 p.m. P.S.T. on February 5, 1996, Ms. Opacic from MCl left a message for me that MCl already had a reservation request for 888-256-7766. 16. On the morning of February 6, 1996, I called Michele Wade at DSMl. I requested to be provided with a complete listing of all RespOrgs so that I could notify them to reserve 888-256-7766. I also requested the necessary information to permit Genesis to become a RespOrg by Friday, February 9, 1996. At this point, I felt that becoming a RespOrg myself may be the only way I would have to successfully access the number, notwithstanding my understanding that the biggest RespOrgs utilized sophisticated equipment which gives them an advantage over the smaller RespOrgs in securing reservations. Ms. Wade indicated that it was possible - 10 - to become a RespOrg by Friday, indicating that I needed to complete an application and that I should contact Number Administration Service Center ("NASC") immediately to set up access so no problems would arise once the application to access the system was approved. Ms. Wade indicated that the most difficult part of the process was getting on line once the application is approved. Ms. Wade provided me with NASC's number. 17. [As part of the application process to become a RespOrg, Genesis was required to secure an insurance binder. I was in Portland, Oregon when I became aware of this process, ready to embark on my scheduled trip, and from Portland I contacted two insurance agents to work on putting together a $2 million dollar binder. The binder was air-expressed from an agent in Medford, I picked it up at the airport counter of Horizon Airlines and went from there to catch a red-eye flight that left Portland at approximately 11:35 PST time so that I could arrive in New Jersey on the morning of February 9th at the offices of DSMl.] 18. Before I contacted NASC following my call with Ms. Wade, I made a call to MCl and spoke with Ms. Opacic who indicated to me that if I was successful in having MCl' s Larry Lee prioritize Genesis' reservation request and honor it over the request Mcr previously received, she would not override his decision. 19. After my call with Ms. Opacic, I contacted NASC and spoke with Keith Meyer. Mr. Meyer explained the proposed reservation process, including how the prefixes would be released during the 10-to-15 minute period after 12:01 a.m. on February 10, 1996. Mr. - 11 - Meyer indicated that I could call him in order to determine at what precise time the 256 prefix would be released. He further indicated to me that he, along with three to four other operators would be typing in the prefixes by ranges, releasing them over the 10-to-15 minute period. In order for him to assist me, Mr. Meyer informed me that I needed to complete the RespOrg application process so that I would be provided with a logon code. He also informed me to speak with Bernadette, in order to get a tutorial code to test the system and to familiarize myself with it since new users have a more difficult time accessing the system. According to Keith Meyer, Bernadette handles Keith's requests to submit requests for logon codes to Tommy Owens of the NASC. 20. I immediately spoke to Bernadette at NASC following my discussion with Keith Meyer. I requested her to submit my request for a tutorial logon and smart card logon in anticipation of approval of Genesis' RespOrg application. I informed her that I did not intend to access the live database system until Genesis' application was approved and that I would return the tutorial in the event Genesis' application was not approved. I explained that it was critical that I be able to access the database after midnight on Friday without any problems and that I was not asking anyone to "break any rules" since I was only asking to access the tutorial database so I could familiarize myself with the system. Bernadette informed me that the NASC would not permit me to access the tutorial database or any other database until Genesis' application was approved. - 12 - 21. On the afternoon of February 6, 1996, I contacted Johnni Bond of AT&T requesting that AT&T preempt any prior requests for 888-256-7766. Ms. Bond indicated that my request would be nearly impossible. It would require contacting all AT&T sales representatives as AT&T was not maintaining a centralized database for 888 reservation requests. 22. Following up on my conversation with Laura Whitten of LDDS on February 5, 1996, I contacted Sonja Coburn of LDDS on February 6, 1996 to request that LDDS request DSMI to place Genesis' 800-256-7766 number on the replication list. Ms. Coburn stated that the replication request deadline had passed. I inquired about the status of the customers who had timely submitted requests to LDDS which were not timely submitted by LDDS to DSMI. Ms. Coburn said Genesis did not qualify for that submission list. She indicated that she would speak to LDDS legal counsel concerning my request to have a priority reservation for 888-256-7766 upon the commencement of the February 10, 1996 reservation period. I was never informed whether Ms. Coburn and LDDS were successful in getting customer requests on the DSMI replication list after the deadline of customer requests which had been timely submitted to LDDS but were not timely submitted to DSMI by LDDS. 23. On the morning of February 7, 1996, I contacted Lynn Sawicki of MCI, the person Larry Lee of Mcr had passed Genesis' priority request on, to request that MCI prioritize Genesis' request for 888-256-7766 (notwithstanding the fact that Mel had already received a reservation for the number). Mr. Sawicki - 13 - indicated that he would speak with Mel's attorneys and get back to me. Later in the morning I received a message from Johnni Bond of AT&T indicating that AT&T would not preempt any reservation requests that it received. 24. On February 7 1 1996 and February 8, 1996 I left messages for Sonja Coburn to return my earlier call concerning my request to LDDS to prioritize the reservation for 888-256-7766 on Genesis' behalf. On February 7, 1996, I received a message from Larry Lee of MCl indicating that MCl could not help in prioritizing Genesis' request nor would MCl nullify the request for the number which MCl previously received. 25. On February 7, 1996 I contacted a smaller RespOrg, ATL Communications, and spoke with Aelea (sp?) Christofferson. I requested that ATL Communications attempt to reserve 888-256-7766 for Genesis. Ms. Christofferson indicated that she would have all of ATL's operators attempt to do so. 26. Frustrated by my unsuccessful attempts to be provided with any assurances from the biggest RespOrgs (e.g, AT&T, LDDS) to prioritize Genesis' request for reservation of 888-256-7766, or that they would override any prior requests for the number in favor of Genesis (e.g. AT&T, MCl), and as a result of LDDS' failure in notifying me of the 888 service and replication list and its apparent refusal to submit my request for replication along with timely filed requests it received but which LDDS failed to submit to DSMl by February 1, 1996, I contacted William Noonan, MD, Esquire, of an intellectual property lawfirm in Portland, Oregon - 14 - whose services Genesis utilized in the past. I requested that Dr. Noonan send a letter on Genesis' behalf to all 156 RespOrgs on the list I had received from Michele Wade of DSMI, demanding that each RespOrg nullify any request for reservation of 888-256-7766. The letter was drafted and urgently faxxed out on February 8, 1996 from Dr. Noonants law office, during a time period when the river which runs through Portland was rising at a dangerous rate and Dr. Noonan's office building was being evacuated. Upon information and belief, not all fax transmissions were completed (e.g., some wrong numbers), however, all confirmation copies were sent out on February 9, 1996 and none were returned. A sample copy of Dr. Noonan's letter is attached hereto as Appendix A. Upon information and belief t Dr. Noonan received a variety of messages from some of the RespOrgs contacted. Some were apparently upset about being contacted and others called merely to indicate that they had not received any reservation for the 888-256-7766 number. 27. On February 8, 1996, Dr. Noonan sent a letter on Genesis' behalf to the attention of Irene Flannery at the FCC, requesting that the 800-BLOSSOM number be replicated (copy attached hereto as Appendix B). Upon further information and belief, Dr. Noonan called the FCC on February 9th to follow up and was informed that Ms. Flannery was not available to speak to him. Upon further information and belief, Dr. Noonan instead spoke with Brad Wimmer of the FCC who informed Dr. Noonan that it was too late to reserve the replication. 28. On February 9, 1996, I provided Michael Wade of DSMI with - 15 - the originals of Genesis' RespOrg application, the original Insurance Binder and a check in the amount of $1300 at DSMI' s offices at Bellcore in Piscataway, NJ. About an hour and 45 minutes later, Michele Wade of DSMI provided me with a RespOrg Smart Card to access the NASC database but she informed me that I would not be permitted to access it from DSMI's office nor could anyone at DSMI instruct me on how to reserve a number. 29. I also asked Ms. Wade that since Genesis was now a RespOrg, would she reserve 888-256-7766 for Genesis since it was my understanding that as a RespOrg, RespOrg's would be able to have their own numbers reserved first, without being subject to others accessing the number. I was informed of this by Judith Oppenheimer, an industry consultant, who indicated that RespOrg's like AT&T could have numbers they use (e.g., 1-800-COLLECT) reserved automatically in light of their status as RespOrgs. Ms. Wade responded "no." Ms. Wade also refused to provide me with a copy of the replication list even though I was standing in front of her. She indicated that the list was being FedExxed to my business address in Medford, Oregon. I informed Ms. Wade that since NASC had refused to permit me to familiarize myself with the database by virtue of a tutorial until such time as Genesis' application was approved, I was now unable to establish communications access with the database, which could have been avoided if NASC was cooperative. Ms. Wade said "too bad," "good luck" and she left the room. It took one business day to correct the communications access problem. - 16 - 30. About two and half hours later I arrived at the headquarters of NASC in Tarrytown, New York. I met with Ms. Janice Jones of NASC who informed me that she could not assist me in any way, including showing me how to reserve a number or to provide me access to a terminal. I requested use of a NASC terminal to access the system since I was previously denied assistance earlier in the week pending approval of Genesis' RespOrg application. I informed Ms. Jones that this was precisely the situation I intended to avoid and Ms. Jones also told me "too bad," that no one could help me now and she requested that I leave, which I did. At about 7:00 that evening I contacted Keith Meyer of NASC. I informed Keith, who had been friendly in my initial contact with him, that I was experiencing difficulty with my computer and requested that I had no way of accessing the database. Mr. Meyer refused to assist me in accessing the database and in permitting me to come to NASC's offices to access the database from one of its terminals. Mr. Meyer's only suggestion was that I get another computer from some other source. 31. From February 9, 1996 at about 5:30 p.m. until approximately 10:30 a.m. on February 12, 1996 I repeatedly tried to access the database but could not properly interface with the software and the communications system. I tried to reach NASC several times during this period, but no one from NASC returned my call until 10: 00 a. m. on February 12th. In that call, NASC provided me with the proper computer settings which then permitted me to access the database. At about 10:30 a.m. on the 12th, after - 17 - being finally able to access the system, I learned that TWC Communications (I1TWCI1) had reserved the number 888-256-7766. I also confirmed that LDDS, Genesis' carrier, was listed in the database as Genesis' designated RespOrg. 32. After I discovered TWC had reserved the number I called Aelea Christofferson of ATL Communications to discuss what I had found out. Ms. Christofferson indicated that one of her operators had noticed that when she was attempting to secure the 888-256-7766 number for Genesis on February 10t.h, the number was reserved by LDDS which she thought was good since she knew LDDS was Genesis' carrier. Seconds later she accessed the database again and it reflected that TWC had secured reservation of 888-256-7766, rather than LDDS. Ms. Christofferson indicated that the operator thought this was very strange. 33. About a half an hour later, I contacted TWC of Edison, New Jersey and spoke to Joe Weiss about the reservation of 888-256 7766 by TWC. Mr. Weiss' response was 110h, the BLOSSOM number. 11 He indicated that TWC had just become a RespOrg. I inquired as to whether his customer would be interested in selling the reservation as I had made every attempt to reserve the number. Mr. Weiss indicated that he doubted it since his customer had already prepared a business plan to use the number. I asked him if he had seen his customer's business plan and if his customer intended to engage in the flower business. He responded that I1they do intend to compete in the flower business 11 and that if I prevent the customer from using 888-BLOSSOM, his customer would still use the - 18 - number as "they intended to take the misdials of customers trying to reach [Genesis' 800-BLOSSOM number]. He further stated that "that could be very profitable without having to advertise." I further asked Mr. Weiss why would his customer prepare a business plan when they had no assurance of getting the number until February 10, 1996. Mr. Weiss responded that they were sure they would get the number. I asked him how he could be so sure of getting the number and he responded "they had their ways. II I asked him to be more specific and he became evasive. Mr. Weiss indicated that he would speak to his customer and suggested that the attorneys speak. I said that would be acceptable. 34. Later on the 12th I received a call from Sonja Coburn of LDDS who stated that LDDS did all that it could do. She was evasive and would not tell me exactly what LDDS did to try to reserve the number 888-256-7766. 35. On February 14, 1996, a letter was drafted and faxxed from Genesis' legal counsel in Portland, Oregon to TWC requesting a settlement of the matter. Another letter was sent on February 16, 1996 to the attorney for TWC' anonymous client also requesting a settlement of the matter. Telephone conversations ensued from these contacts, however, to date, TWC's anonymous client refuses to settle the matter. 36. On February IS, 1996 Susie Cotter of Sprint left a message for me indicating that Sprint had made a "valiant" effort to reserve 888-256-7766 for Genesis but that somehow TWC had the number reserved first. 02/26/96 20:53 '6'202'l:l.1 :\084 - J 9 The foregoing statements are true and correct to the best of my knowledge, information and belief. Robert H. Tate February~,1996 Appendix A .? , .. KLARQUISr PA!ENT+ p.4J003/00~ ip MltL.Wtr J-c:..,wJ wva. Y. ClIlIftIl Puri:kw. Hapey x-dl5.IIw1* ....ADala:n J-t!ir".;~ D..jJ P. 'UCI$Cf. ~J.Ncy D-wL.s.,hw,]r. ]GhAW.SNatr JcIIlID.V~ AIda,,, L Wlli_ Wv'IlI It. W'III\ Utw\'~ll. WiUi2lll V. NOOllJIl, M.U. KuiQUIST SPAIIMAN c.wmu LIIGB &WmNgfON II."ilrtrrdL;a,4LWIJI')~ P'Qbruary~.1~~6 ~COO:$l,"T,q,-n ~dJ.bp, 'h.l\ S~Lct1oich, P«.D. YIi [AX (2141 69Q-5925 CQJ!l%J!HATION 11 HAIL Mr. Steve~ann.r r.ong Distance Network 1600 fLvwenade Center Suite~S~O R1~hard.onrTX 75080 1\e: Service Mark for SOO-BLOSSOM and Me-PoT.OSSOM o~~R~f.No.SO~'-434)2/WDN ~.arMr. Steve Tanner; Thi $': Iet:ter is be1nq w.t:iccen on Qahalf of Genesis Two, Inc., theown~L.of theservic~marK 8o0-5LOSSOM , to notify you that our client's rights inth~t~~kwill bevlgorou~li enforced. If yt"mr company assigns 01' attempts to recerve the number888-~LOSSOMoraae-2SG-71~6for yourQelfO~~nyother ~~Ltybesides Cenesis Two, our~lientplans totak~allnece3~ary and appropriatel~galaction. Such action may include seeking d~magesandlnjuIl~Liverelief~gai~styour company and thepar~y to whom that telephone numb@rm~ybe ass1gned. Genesi~Two h&5 used thet~l.phonenUmbereOO-BLO~50M throughout the united. St.tes and in other CouI.l.tries rand h.:1e invested heavily in advertlsing and other promotional :;lc-t".ivity related to the use of thi8 number in&ssoci~~ionwithth~sale and dellv'cry of£lo~ersand many other gHt lLems. Gcnecis Two ha, de·..eloped goodWill in this mark by virtue of th?S8 sub~tanti;:llinvestment.:;> I and also ha.s fil':'r1 service mo.I..k. .<lpplicat,1on:::> with the U. S. Pat':'nt. and Tradellla;k Offic::e on thQ marks eOOBLOSSOM ann 8S8-BLOSSOM. Damagcc from an infringing U~~of these marks aLI:: expected to be slIhstant.ial. rt h:u ecme to our attention chat a t.hird. parLy il5 at,t.empt.ing LO Le:serve the mark BS8-BLOS:iUl"I or Se6-;Z;JG 77b6 for use in an infringingm~nner.Us~of the mark SSS-BLOSSOM in .. ( KLARQUIST PATENT+ :,' .~004/004 connection with confusingly similar services will be an infringement of OUL- client's service mark rights. Assignment of the telephone number 888-7766 will also create contus1on in the marketplace beoause ot the sUbstantial advertising by Genesis Two in~unne~~ionwith Lhe 800-256-7766 t.lephone nUmber. Courts have vigorously protected service mark rights in toll-free numbers because of the pUblicconfuei~neaus~dby similar alphanumeric telephone number combinations. Dial.-A-Mattress Franchiae Corp. v. Page, 860 F.2d 675 (2d C1r. lj89}i Express Mortgage Brokers, Inc. v. Simpson Mortgag., Inc.,3~U$PQ2d~37l (S.D. Mich.1~~4).Telephone companies have been requirea to take affirmative steps to avoid confus1on by telephone customers in such cases. vocational PeI-sonnelService~,Inc. v. Statistical Tabulating corp., 305 F. supp. 701 (D.C. Minn. 1969). To avoid these legal consequences, we ask that your company nullify all requests you may have received for the number eSS-BLOSSOM or 888-256-7766, othe£ than~equests!rom Genesis Two. If you have not or do not receive any such :r.-equeat :f:rom another party, you may disregard this not±ce. very eruly yours J KL~QUISTsPARXMAN CAMPBELL LEIGH & WHINSTON, LLP (p [LL. 4Nvl-'"P-JJIH'~ William D. Noonan, M.D. WDN;en:db cc: Robert Tate KLARQUISTPKrEfc~ v CONFIRMATION COpy P.6 1A1 ~002/004 The anclosed letter w??f~.~on 'February 9, 1996 to companies who may have been Qont&Qted by someone, other than Cenesis Two. who wa. altempting to reserve the telephone number 888-2S6-7766.Plea~edisregard this confirmation copy if you hava notb~~ncontacted by that party. Thank you Appendix B ...---','~_. 02126/96 09:06 1:503 228 9446 KLARQUIST PATENT ~OOl/002 lUthleen]. Bucl:ky Lisa M. Cald",eU TlDIOthy M. Carlson Al:IJI E. 00111, Ph.D. Scott D. £:ads James E. Gtrinpr Dollglas D. H:IIlcock Joseph T.Jalcube~ Mark M. Meininger Joel R. Meyer Mark.4..PQrtl!r Raben F. Scoai Stacey C. Sbtl!l' Stl:phcn A. Wi,ht TlOIl-'lCIL CO'\:5\....1"'''Tl David J. Earp. Ph.D. Stephel\Lcs~vich.Ph.D. A Rtgintrtd Lim;trd Liability Parmmbip PIll",t. T,,_,rw Il7IJ Copyrigbt l.6w Liti,.tioll ,na Liwlting One World Trade Unter 121 S.W. Salmon Street, 16th Floor Portland, Oregon 91204-2988 U.S.A. FAX: 503·228-9446 Telephone: 503-226-7391 February 8, 1996 BY FACSIMILE: 202-418-2345 KLARQUIST SPARKMAN CAMPBELL LEIGH &WmNSTON Irene Flannery, Esq. Federal Communications commission 1919 M street, N.W. Washington, D.C. 20554 Dear Ms. Flannery: This letter is beinq sent to you on behalf of Genesis Two, Inc., the owner of the servica mark SOO-BLOSSOM. The carrier responsible tor the SOO-BLOSSOM telephone number did not poll Gene.is TWo as recommended in your Report DC 96-3 issued January 25, 1996. The February 1, 1996 deadline for submitting reque.ts tor eorrespondinq 888 numbers therefore passed before Genesis Two bacame aware of the February 1 deadline. It has now come to our attention that a third party is attemptinq to reserve the telephone number 8B8-BLOSSOM (888-256-7766) for use in a manner that will infringe the Genesis Two service mark. We therefore request that the FCC identify 888-256-1166 as a number that should be reserved tor Genesis TWo. OfcOl,.-,n Wil/hm D. Noonan, M.D. Mm: L. Bec:Iarr J--Call1pbell W....Y. Conwell P,atdcW.HlJIhty ICcsu!cfh S. lIarquilt Rulon A. K1ialct II JamaS.Leip DM:I P. Petcntn lidatrdj. Polley Dontld L. Stephens. Jr. }olin W. SNII1 }oJIn D. Vaadalberg Atthur L. WlUIIIEClII Garth A. WIM Genesis Two has used the telephone number 800-BLOSSOM (800-256-7166) throughout the United States and in other countries, and has invested heavily in advertising and other promotional activity related to use of this number. Genesis Two has developed goodwill in this mark by virtue of these substantial investments, and also has filed service mark applications with the U.s. Patent and Trademark Office on the marks aOO-BLOSSOM and 8SS-BLOSSOM. Damaqe. trom an infringing use of these marks are expected to be SUbstantial. Hr. Robert Tate, president of Genesis Two, made numerous attempts to re??rve the number 888-256-7766. He was given misleading or incomplete information by carriers about proceduras for reserving tha 888 number. Given these circumstances, the significant legal damages that will be caused by misappropriation of the mark, and the straiqhtforward manner in Which legal consequence. can be avoided at this time, we ask that you designate 88S-256-7766 as "unavailable" at the time reservation of 888 numbers beqins on February 10. "---'"" Irene Flannery February 8, 1996 - Page 2 Our Ref. 43232/WDN "'_00' We also ask that the FCC reconsider the process by which 888 telephone numbers were r.s.rved. There is an inherent conflict of inter.st in asking carriers to poll their customers to identify subscribers Who want to obtain their corresponding numbers with the 888 prefix. Responsible organizations want to have the greatestva~i.tyof 888 numbers available tor new customers, which may have contributed to the inadequate or even misleading nature of the information given to some customers, SUch as Genesis Two. This process will ineVitably lead to an extraordinary amount of litigation if 800 SUbscribers find their t valuable service marks diluted or infringed by 888 imitators who , are attempting to take advantage of the goodwill already created in the numbers by others. Please set aside the number 888-256-7766 on behalf of Genesis Two. This simple step taken at this time could avoid expensive and prOlonged legal action (inclUding requests for damages and injunctive relief) that will become necessary if a third party misappropriates the 888-256-7766 telephone number. Please call me to confirm receipt of this request, and notify us of the action the FCC intends to take. We are presently experiencing flood conditions in Portland, which are threatening to inundate our office building adjacent the Willamette River. I will attempt to call you on February 9 from another location if telephone service to this office is interrupted, because this matter is of the utmost urgency. sincerely, KLARQUIST SPARlOIAN CAMPBELL LEIGH & WHINSTON, LLP WdL'~])-AJ~ William D. Noonan WDN:caf cc: Robert Tate , CERTIFICATE OF SERVICE I, Kathryn M. Damm, a legal and administrative assistant in the law firm of Bechtel & Cole, Chartered, certify that a copy of the foregoing EMERGENCY PETITION FOR SPECIAL RELIEF has been hand delivered or sent by Federal Express (*) this twenty-ninth day of February 1996 to the following: Regina Keeney, Esq. Chief, Common Carrier Bureau Federal Communications Commission 1919 M Street, N.W., Room 500 Washington, D.C. 20554 John Morabito, Esq. Common Carrier Bureau Federal Communications Commission 1919 M Street N.W., Room 544 Washington, D.C. 20554 Kathleen Levitz, Esq. Common Carrier Bureau Federal Communications Commission 1919 M Street, N.W., Room 500 Washington, D.C. 20554 Irene Flannery, Esq. Common Carrier Bureau Federal Communications Commission 1919 M Street, N.W., Room 544 Washington, D.C. 20554 Melissa Newman, Esq. Common Carrier Bureau Federal Communications Commission 1919 M Street, N.W., Room 500 Washington, D.C. 20554 William E. Kennard, Esq. Office of the General Counsel Federal Communications Commission 1919 M Street, N.W., Suite 614 Washington, D.C. 20554 - 2 - Richard A. Metzger, Esq. Common Carrier Bureau Federal Communications Commission 1919 M Street, N.W., Room 500 Washington, D.C. 20554 Geraldine Matise, Esq. Common Carrier Bureau Federal Communications Commission 1919 M Street, N.W., Room 518 Washington, D.C. 20554 Norina T. Moy, Esq. Leon M. Kestenbaum, Esq. Jay C. Keithley, Esq. SPRINT CORPORATION 1850 M Street, N.W., Suite 1100 Washington, D.C. 20036 *Mark C. Rosenblum Peter H. Jacoby Judy Sello AT&T Room 3244JI 295 No. Maple Avenue Basking Ridge, NJ 07920 Roy L. Morris Director ALLNET Communications 1990 M Street, N.W., Ste 500 Washington, D.C. 20036 Richard S. Whitt Director, Federal Regulatory Affairs WorldCom, Inc. 1120 Connecticut Avenue, N.W. Suite 400 Washington, D.C. 20036 *Joe and Sharon Weiss TWC Communications 38 Carriage Place Edison, NJ 08820 - 3 - *Michael Wade President Database Service Management, Inc. 6 Corporate Place Room PA-IF286 Piscataway, NJ 08854-4157