- 49 -
names that owner furnishes, postage to ship the tape or labels,
and a list broker’s fee or list manager’s fee12 for arranging the
exchange transaction.
When W&H exchanged for petitioner names it owned jointly
with petitioner, the cost to W&H of acquiring the third party’s
names included charges for computer processing, postage, and a
list broker’s or list manager’s fee. W&H did not pay a rental
fee to the owner of the third-party names in these situations,
because W&H was providing names to the third party that normally
rented for $60 per thousand names.
Table 8 shows the amounts petitioner as lessee paid to
Washington Lists by way of mailing list rental fees for renting
mailing lists which W&H owned or mailing lists to which W&H
claimed mailing list rights. The payments petitioner made to W&H
include payments for names that W&H acquired by exchanging
petitioner’s names for names owned by unrelated third parties.
Table 8
Payments for Names W&H
Payments for W&H Obtained by Exchanging
Year Masterfile Names Petitioner Names
1984 -0- $1,450
1985 $6,448 57,349
1986 44,645 119,436
1987 122,747 219,896
1988 32,408 24,660
12 In the direct mail industry, a list manager functions
as a sales agent who represents a list owner in marketing the
list owner’s mailing list to others. The list manager promotes
the mailing list and arranges for rentals and/or exchanges of the
mailing list to other parties.
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