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refresh and add new names to its housefile.
An organization’s housefile can also be of considerable
value to other organizations in their fundraising or solicitation
efforts. Accordingly, an organization may be able to profit
economically from its housefile by using its housefile to produce
rental income or by exchanging its housefile for another
organization’s housefile, thereby reducing its fundraising
expenses. Before the late 1970's there were few mailing lists on
the market, and most that were available were exchanged list for
list, rather than rented for a fee. By the late 1970's and early
1980's a rental market for mailing lists had developed. The
rental market has expanded since the mid-1980's because there are
more lists being made available for rent and more list rental
brokers. However, some organization that have mailing lists did
not rent or exchange their lists.
It is common practice to use monitoring or “dummy” names
(sometimes called “seed names”) in a housefile, to guard against
unauthorized use of the housefile and to monitor the patterns of
mail drops across the United States. Both petitioner and W&H
maintained their own, separate, monitoring names with regard to
the mailing lists developed under the Contract. The parties have
not presented us with illustrations of how this dummy name
monitoring works in practice, or how much effort or funds are
expended in such monitoring programs generally, or were expended
under the Contract.
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