3Cinteractive would like to address the recent development of the TeleCommuncations Systems, Inc. (TCS) patent regarding SMS applications. The process patent, broadly covering MO-to-application via SMS short codes, has been making its way around the mobile industry for the past several weeks. 3Ci would like you to know that we are highly aware of this patent and that we are working closely with the Mobile Marketing Association (MMA) and other industry organizations to stay up to date on all of the latest news and updates. The facts as 3Ci understands them today are:

1. The MMA has engaged legal counsel to review the TCS infringement notices;
2. The MMA has suggested that the infringement notices were prepared “in anticipation of litigation”;
3. The MMA is exploring the possibility of a joint defense or declaratory judgment action;
4. Identifying “prior art” may invalidate the patent or showing that MO-to-application via SMS short code was commercially used prior to April 18, 2000. Any knowledge or lead regarding this should be immediately sent to Kristine van Dillen of the MMA;
5. 3Ci clients should exercise their best business judgment regarding a response to a TCS notice; and
6. 3Ci clients should consult with legal counsel before responding to any TCS notice.

If you should have any specific questions regarding TCS or their process patent in regards to your relationship with 3Cinteractive, please contact 3Ci General Counsel Mitch Kass at 561-443-5505.