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Pitney Bowes, Inc Postal Regulatory Commission Submitted 6/24/2015 3:35:36 PM Filing ID: 92583 Accepted 6/24/2015 BEFORE THE POSTAL REGULATORY COMMISSION WASHINGTON, D.C. 20268-0001 ) COMPLAINT OF FREDERICK FOSTER ) Docket No. ) COMPLAINT OF FREDERICK FOSTER (June 24, 2015) 1. Pursuant to 39 U.S.C. § 3662, Pro Se Litigant Frederick Foster (“Foster”) respectfully submits this complaint against the United States Postal Service (“Postal Service”), Pitney Bowes, Inc. (“PBI”) and John Does 1-10. 2. The complaint involves violations of: a) 39 USC §404(a) pertaining to the unlawful disclosure of intellectual property/proprietary information to any third party, and the unlawful use of a person’s information without permission from the person, b) 39 USC §401(2) pertaining to the unlawful investment or divestment of USPS competitive product funds and the intentional sabotage, dismantling, and demise of the Postal Service’s assets, revenue and real estate, to perpetuate a scheme to privatize USPS upstream operations, c) 39 USC §403(c) pertaining to any party including an officer of the Commission representing the interest of the general public, who believes that the Postal Service has violated this section (§§403, 404) may bring a complaint in accordance with section 3662. 3. The Commission has jurisdiction over this complaint pursuant to 39 U.S.C § 3662. 4. Moreover, the United States Postal Service, US Department of Justice, US District Courts, US Court of Appeals for Federal Circuit, and Pitney Bowes, Inc. (in error) have either asserted, found, or affirmed that the Postal Regulatory Commission has exclusive jurisdiction over claims against the Postal Service alleging violations of 39 USC § 404(a) and Plaintiff must file this complaint in the PRC. 5. In accordance with the decision of the District Courts, Plaintiff respectfully files this complaint in the Postal Regulatory Commission. 6. Notices and communications about this matter should be sent to: Kevin Calamoneri [email protected] Deputy General Counsel USPS 475 L’Efant Plaza SW Washington, DC 20260 202-268-3876 James Mecone [email protected] USPS Law Department 475 L’Efant Plaza, SW Washington, DC 20260 202-268-6525 Counsel for Pitney Bowes, Inc Christopher Lewis [email protected] Blank Rome, LLP 130 N. 18th Street Philadelphia, PA 19103 215-569-5500 7. On October 16, 2014, Foster conducted a settlement conference with James M. Mecone, Anthony F. Alverno, and Kyle R. Coppin, of the USPS Law Department, attorneys for the Postal Service. 8. On November 12, 2014, the USPS Law Department responded to Plaintiff’s settlement demand stating, “The Postal Service does not agree to the demands...” (a true and correct copy of USPS Law Department email in disagreement to Plaintiff’s settlement demand, is attached hereto, incorporated herein, and marked as Exhibit ―A‖). The Postal Service did not make a counter offer. I. FACTUAL ALLEGATIONS A. Frederick Foster’s Business 9. Frederick Foster is a US Citizen/Inventor/Entrepreneur who resides in Philadelphia, Pennsylvania, and in response to calls for help from the Postal Service and the general public, was seeking to do business with the Postal Service. 10. In 2007, Foster conceived the Virtual P.O. Box/Internet Passport (“Virtual P.O. Box”), a secure digital delivery service. The Virtual P.O. Box was conceived for two primary purposes: a) to offer the Nation, our citizens, businesses, institutions, and the global community secure delivery of electronic or digital communications and money transfers…(many other services were intended and would be added to suit the customers’ needs including but not limited to, verification services, shipping and mailing services and discounts, a basic juncture between the physical and digital addresses), b) to repair the Postal Service’s failing financial condition, return the lost audience or customers back to the Postal Service, transition the Postal Service’s business model, real world operations, governmental status and authority to the digital world or the Internet. The implementation of the Virtual P.O. Box Initiative would also set a standard for the Internet’s private service providers. 11. The Postal Service, over the past ten years has suffered losses of more than Forty Seven Billion Dollars ($47,000,000,000). Throughout their failing financial condition, the Postal Service solicited requests for new ideas from the private sector. Foster contacted and introduced the Virtual P.O. Box concept to a Linda Kingsley, Senior Vice President Strategy and Transition (a true and correct copy of the communication introducing the concept is attached hereto, incorporated herein, and marked as Exhibit ―B‖). 12. Ms. Kingsley instructed Foster to upload the Virtual P.O Box Introduction into the USPS Innovations Data Base. Foster uploaded his intellectual property on or about May 25, 2007 (a true and correct copy of the Virtual P.O. Box Introduction upload is attached hereto, incorporated herein, and marked as Exhibit ―C‖). Foster’s concept was labeled Innovations Proposal Case Number 3127 by a Linda Stewart, Manager Strategic Business Initiatives. Foster’s case was assigned to a Thomas Cinelli, Acting Manager Strategic Business Initiatives. 13. The first thing Mr. Cinelli informed Foster of was they (Postal Service) needed a patent number or patent application number to assure Foster was the owner of the intellectual property that was under discussion. Foster filed a provisional patent application in the USPTO for a “verification process” to be administrated by the Postal Service. The verification process was not patentable, and significantly, Foster did not include the Virtual P.O. Box trade secrets in the patent application, Foster maintained the secrecy of the Virtual P.O. Box trade secrets. Foster did not want the Internet’s private service providers to know what Foster was proposing for the Postal Service. Foster disclosed the provisional patent number to the Postal Service through Mr. Cinelli. 14. The Postal Service and Foster engaged in numerous, ongoing discussions, through Mr. Cinelli, concerning the Virtual P.O. Box Initiative. On May 31, 2007, the Postal Service, through Mr. Cinelli, informed Foster via email “I am moving the concept through a number of internal stakeholders. I will be in touch.” (a true and correct copy of the May, 31, 2007 USPS Thomas Cinelli email is attached hereto, incorporated herein, and marked as Exhibit ―D‖) On June 11, 2007, Foster received an email from the Postal Service thru Mr. Cinelli that stated, “…I will be in touch after I have received responses from potential stakeholders.” (a true and correct copy of the June 11, 2007 USPS email is attached hereto, incorporated herein, and marked as Exhibit ―E‖). 15. After receiving the approval of the internal and potential stakeholders, which included Pitney Bowes, Inc., Mr. Cinelli began discussing a pilot for the Virtual P.O. Box Initiative. Mr. Cinelli referred Foster to the Postal Accountability Enhancement Act (39 U.S.C.) wherein §404(a)(2) & (3) specifically outlines some of the provisions of a “Non- Disclosure/Non-Compete Agreement”. §404(a)(2) prohibits the Postal Service from disclosing a person’s intellectual property/proprietary information to any third party and (3) prohibits the Postal Service from taking information from an individual and using it in whole or in part without permission from the individual. Mr. Cinelli also explained the forecasted profit for the Virtual P.O. Box pilot needed to be under the $10,000,000 (Ten Million Dollars) experimental product Dollar Amount Limitations (39 U.S.C. §203(e)(1)) to begin the pilot without seeking approval from the PRC. 16. On July 12, 2007, Mr. Cinelli and Foster conducted a conference with Foster’s then Attorney Adam Shapiro, Esquire, discussing the pilot for the Virtual P.O. Box (a true and correct copy of invoice from Attorney Shapiro memorializing the conference is attached hereto, incorporated herein, and marked as Exhibit ―F‖). 17. Mr. Cinelli, in a sense of urgency, told Foster, “Any information you (Foster) can gather, get that to us (USPS), and any information you need to put in your own words, because it‟s a new product, get that to us too”. Foster followed up with several documents and information updates detailing the Virtual P.O. Box trade secrets. 18. Mr. Cinelli explained to Foster they would have to confer with the USPS Technical, Marketing, and Law Departments. Mr. Cinelli and Foster conducted a conference call with an Executive of the USPS Marketing Department. The USPS Marketing Executive asked Foster, “How much marketing (in terms of money) would it take to make (Foster‟s) projection of Four Billion Dollars ($4,000,000,000)?” Foster gave a ball park estimate of, “Less than Ten Million Dollars ($10,000,000)”. USPS Marketing Executive responded, “The Marketing Department doesn‟t have that type of money”. Later, Mr. Cinelli explained to Foster, “The marketing budget could be raised if needed”. 19. Mr. Cinelli and Foster conducted a conference call with an Executive of the USPS Technical Department, who agreed on technical issues and the limitations of securing a digital environment, he then asked, “What‟s going to bring in the revenue with free email?” Foster explained the revenues will be generated through subscription fees, advertising, and money transfers fees. 20. Mr. Cinelli expressed to Foster the Postal Service’s desire to expedite the process of implementing the Virtual P.O. Box Initiative. At some point, Mr. Cinelli asked Foster, “When the Virtual P.O. Box Subscribers make payments, whose bank account will the money be deposited into?” Foster responded, “Let me get back to you after I have conferred with my colleagues”. Foster received a follow up call from Mr. Cinelli who asked, “Have you spoken to your colleagues?” Foster responded, “Yes, they said, since banking is automatic, the monies can be deposited in my account and the USPS monies will be automatically transferred into the USPS account, and moreover, we can get developers from the private sector to develop the web site and software for the Virtual P.O.
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