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The Legality
of Call Recording
www.shoretelsky.com
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On the Record
Complying with Call Recording Laws
Call recording regulations are complicated, and the penalties for infringement can be costly, so it’s critical
for companies that rely on phones for business to know their legal rights and obligations when it comes to
recording calls. Adding to the complication is the fact that federal and state governments and the FCC all
have different rules and regulations to determine what makes a call recording legal. However, one thing is
clear, the deciding factor for all three organizations in determining whether a call recording is legal can be
summed up in one word — consent.
Vermont is the only state that does NOT have criminal penalties
for illegally recording calls.
The 12 states that do NOT allow civil suits for illegally recorded
calls are: Alabama, Alaska, Arkansas, Colorado, Georgia,
Kentucky, Montana, New York, North Dakota, Oklahoma, South
Dakota and Vermont.
(Source: http://www.rcfp.org/reporters-recording-guide/tape-recording-laws-glance)
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Who’s in Charge, Here?
Understanding Call Recording Jurisdictions
Because there are three organizations (the feds, the state and the FCC) that enforce call recording laws in
the U.S., it’s important to understand the jurisdictions of each:
•	 Federal Government - does not have many laws governing call record¬ing, but does require one-party
consent.
•	 State Governments - have well-defined call recording laws and penalties, and 13 states require all-party
consent.
•	 The FCC - requires all parties in a recorded interstate call be notified either verbally or through a beep
heard intermittently throughout the recording. Lawsuits involving interstate phone calls have been
judged in BOTH the originating state and in the receiving state, so it’s best to abide by the stricter state
guidelines when recording interstate calls.
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International Laws
International call recording regulations vary widely, so be sure to consult the local government’s
telecommunications authority before recording calls. Many countries don’t have specific laws regarding
call recording, and operate on a case-by-case basis. And in some countries, corporate literature that
declares the company records calls is considered consent.
The 12 states that require all-party
consent are:
California, Connecticut, Florida,
Illinois, Maryland, Massachusetts,
Michigan, Montana, Nevada, New
Hampshire, Pennsylvania and
Washington.
(Source: http://en.wikipedia.org/wiki/Telephone_recording_laws)
12
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Are Your Calls One Party or All-Party?
State Consent Rules
All states have their own laws regarding call recording. In most states one person on the call has to
provide consent to the recording; however, 12 states require all parties on the call to give consent prior
to recording. Sometimes all-party consent is given the misnomer of “two-party consent,” but if there are
more than two people on the line, ALL must consent to the taping.
YESYES YES YES NO
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One-Party Consent — At least one person in the conversation knows the call is being recorded—even
if that person is the one conducting the recording. Thirty-eight states and Washington D.C. allow you to
record calls you are on without informing the other parties you are doing so.
All-Party Consent — Everyone in the conversation is told the call is being recorded either verbally or with
an intermittent beep. If two people are talking and a third person joins the call, the third person must be
notified the call is being recorded.
What happens when a one-party state calls an all-party state?
All state-to-state calls are subject to federal laws, so in this case it’s best to compare federal laws with laws
for both states and abide by whatever is strictest.
“It is almost always illegal to record a conversation to which you are
not a party, do not have consent to tape, and could not naturally
overhear.” - Reporters Committee for Freedom of the Press
(Source: http://www.rcfp.org/reporters-recording-guide/introduction)
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Is That Legal?
TRUE OR FALSE
Federal courts say it’s okay to disclose the contents of an illegally
intercepted call or communication.
False: The federal government and most states declare this activity illegal.
It’s okay to perform a hidden recording in a private place.
False: Use of hidden recorders violates wiretap and eavesdropping laws and could bring
a civil lawsuit for invasion of privacy.
It is always legal to tape or film a face-to-face interview when your
recorder or camera is in plain view.
True: The consent of all parties is presumed in these instances.
1
T F
T F
T F
2
3
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What’s the Trouble?
Understanding the Limits of Consent
In general, you may record, film, broadcast or amplify any conversation where everyone involved has given
consent. However, if you’re thinking about taping a conversation, it’s imperative you make certain that
ALL consent requirements for BOTH state and federal laws have been met. Three examples of when it’s
smartest NOT to record include:
Criminal Purpose — Of course we know you never would, BUT recording a conversation in furtherance of
a crime is illegal.
Trespass — A person whose conversation is secretly recorded can sue for trespass and intrusion.
Expectations of Privacy — Be careful how you use taped conversations because a person can sue if they
have a reasonable expectation of privacy with regards to the use of the taped conversation. For example,
you told someone their call could be used for training purposes, but instead, you used it in a national
marketing campaign.
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“Companies that provide call center services to California consumers are
increasingly being targeted in class action lawsuits under an arcane
section of the state penal code that provides a civil right of action and
statutory damages for monitoring or recording of confidential telephone
conversations without the other party's knowledge or consent. The
exposure in these cases can be enormous because the statute provides
for $5,000 in statutory damages; an amount that the lawsuits allege is owed
for each call. For example, a call center that receives 1,000 calls during a
time in which the warning was not provided may find itself defending a
$5 million lawsuit, and 10,000 calls means a $50 million lawsuit.”
Paul G. Karlsgodt
Partner at BakerHostetler Law Firm
(Source: http://www.bakerlaw.com/)
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Is That a Yes or a No?
Obtaining Caller Consent
There are many different ways to obtain consent from callers in order to record a call, but the two most
common are: pre-recorded messages and beep tones.
Pre-Recorded Messages — Most companies inform callers their calls may be “monitored or recorded”
via a pre-recorded message at the beginning of the call. This technique is best used before the caller is
connected to a live agent.
Beep Tones — These are specific beeps that are heard for the duration of the call and must be within
1260–1540 Hertz, and last .17-.25 seconds. The beeps must go off every 15 minutes for the entirety of the
call.
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Recording Outbound Calls
There are basically two ways to obtain consent for outbound calls, pre-recorded messages and
announcements; however, neither of these solutions is without issue. Outbound pre-recorded messages
warning, “This call will be recorded,” often lead to people disconnecting before the call con¬nects. And
announcing the recording at the beginning of the call proves problematic when a phone switches hands
mid-call. To comply with laws, the next agent must re-announce it’s a recorded line since every person
on the phone must be informed of the recording. In short, if you do not want to open your call with a
recorded notification, it’s best not to record outbound calls to all-party states.
Calls recorded from jails and prisons
are now being used to ensure that
dangerous inmates stay locked up.
CNN legal analyst Jeffrey Toobin
says, "It's not unfair. It's prison. And
when you're in prison, you lose
certain rights, like the ability to have
phone calls in privacy."
(Source: http://www.cnn.com/2011/CRIME/03/26/jailhouse.calls.recordings/index.html)
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Should I Be Recording This?
Knowing When It’s Best to Record
There are several situations where a recorded call could mean the difference between victory and defeat
in a court of law. To protect your company from false claims, it’s important to understand the times when
you absolutely must record calls.
Insurance Claims and Healthcare — Conversations about insurance claims should be recorded to
provide clear evidence of what is agreed to and discussed in a claim. This eliminates he-said-she-said
disputes and holds both parties to the facts of the discussion. In these situations, a recorded call not only
protects your company, it can save you money in the case of untrue claims.
Phone-Based Employees — Recorded calls are often used to train phone-based employees; however,
these same recordings have the potential to resolve customer disputes and save the company money by
preserving customer relationships.
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Billing Support — When goods or services are purchased by phone, the law requires that all disclaimers,
terms and conditions of the purchase be clearly explained to the buyer. A recording not only proves that all
disclaimers, terms and conditions were clearly explained, but can be used as proof that the agent followed
the company processes.
Complying with Industry Regulations — While many industry regulations do not require calls to be
recorded, a recorded call can be used to settle a claim against a company’s behavior, proving compliance
with regulations, and reducing liability and exposure.
The National Association of Attorneys General
estimates about 5,000,000 Americans are
defrauded by telemarketers every year and one out
of every five does not report the fraud, because
they are embarrassed.
Telemarketing investment scams
alone amount to losses of $1 million
an hour.
Americans lose $40 billion a
year to fraudulent telemarketers
according to the National Fraud
Information Center.
(Source: http://www.dianamey.com/telemarketing-statistics/)
5,000,000DEFRAUDED AMERICANS
$40BILLION
$1MPER HOUR
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What Is TSR?
Telemarketing Sales Rule
The Telemarketing Sales Rule (TSR) applies to any plan, program, or campaign to sell goods or services, or
obtain a charitable contribution through interstate phone calls.
Designed to prevent fraud, the rule requires telemarketers to make certain disclosures and gives state law
officers the authority to prosecute fraudulent telemarketers. It also helps consumers stop unwanted calls
by instructing them to tell telemarketers to, “Put me on your DO-NOT-CALL list.”
The rule applies whether or not the telemarketer:
•	 Initiates or receives calls to or from consumers
•	 Makes or receives calls using low- or high-tech equipment, (like automated systems)
•	 Makes calls from outside the U.S. to consumers in America
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Any company that conducts business over the phone can be subject to the TSR Rule even if the call is:
•	 An unsolicited call from a consumer
•	 A response to a general media advertisement or direct mail solicitation
•	 An outbound non-sales call such as a customer service call
•	 An upsell following an initial transaction
“Failure to provide any of the required information in a ‘clear and conspicuous’
manner, before the consumer pays for goods or services offered, is a deceptive
telemarketing act or practice that violates TSR, and subjects a seller or
telemarketer to a $10,000 fine for each violation.”
(Source: http://business.ftc.gov/documents/bus27-complying-telemarketing-sales-rule)
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Why Comply?
TSR Is Serious Business
TSR is a far-reaching and broadly interpreted law that’s heavily enforced by the FTC, so if you find yourself
in a situation where you aren’t sure whether or not you need to comply, it’s smartest just to comply
because not complying can be costly. Some examples of times you should comply are:
Shipping — When you take orders by phone, you may choose to provide prospective customers with
updated shipment information. This may differ from what you said or implied about the shipment time
in your advertising. While the updated shipment information you provide on the phone supersedes any
shipment representation you made in the advertising, you must have a reasonable basis for the updated
shipment information.
Upselling — A consumer calls a store to inquire about the price of an oven. Because the call is not the
result of a solicitation by the seller, the initial inquiry is exempt from TSR. However, if the seller tries to
upsell a refrigera¬tor during the same call, the upsell transaction is subject to TSR.
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Court Orders Cross-Border Telemarketers to Pay Nearly $5 Million:
Canadian Defendants Fraudulently Pitched Advance-Fee Credit
Cards and “Free” Gifts
(Source: http://www.ftc.gov/opa/2008/05/pacliberty.shtm)
Pacific Liberty must pay
$4,997,695.60
The FTC charged Canadian-based company, Pacific Liberty, with using outbound
telemarketing to fraudulently call United States consumers. For an advance fee
of $319, which was electronically debited from consumers’ bank accounts, the
defendants promised they could deliver Visa or MasterCard credit cards,
along with free gifts such as cell phones. No consumers who paid the money
received either credit cards or “complimentary” gifts. Accordingly, the court
found the defendants guilty of violating Section 5 of the FTC Act and the TSR and
ordered them to pay $4,997,695.60.
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Play It Smart
ShoreTel Knows Best
We hope our eBook on call recording has helped you better understand where your rights and the rules
converge. To learn more about ShoreTel Sky and download other related eBooks, white papers, and view
product demos, please visit http://www.shoretelsky.com/resources.
This eBook and the information contained on this website is offered only for general informational and educational purposes. It is not offered as and
does not constitute legal advice or legal opinions. This eBook and the website in which it resides contains many pages of hyperlinks to other resources
on the Internet. These links are provided as citations and aids to help you identify and locate other Internet resources that may be of interest, and are not
intended to state or imply that ShoreTel sponsors, is affiliated or associated with, or is legally authorized to use any trade name, registered trademark,
logo, legal or official seal, or copyrighted symbol that may be reflected in the links.

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The Legality of Call Recording

  • 1. The Legality of Call Recording www.shoretelsky.com
  • 2. Share this: On the Record Complying with Call Recording Laws Call recording regulations are complicated, and the penalties for infringement can be costly, so it’s critical for companies that rely on phones for business to know their legal rights and obligations when it comes to recording calls. Adding to the complication is the fact that federal and state governments and the FCC all have different rules and regulations to determine what makes a call recording legal. However, one thing is clear, the deciding factor for all three organizations in determining whether a call recording is legal can be summed up in one word — consent. Vermont is the only state that does NOT have criminal penalties for illegally recording calls. The 12 states that do NOT allow civil suits for illegally recorded calls are: Alabama, Alaska, Arkansas, Colorado, Georgia, Kentucky, Montana, New York, North Dakota, Oklahoma, South Dakota and Vermont. (Source: http://www.rcfp.org/reporters-recording-guide/tape-recording-laws-glance)
  • 3. Share this: Who’s in Charge, Here? Understanding Call Recording Jurisdictions Because there are three organizations (the feds, the state and the FCC) that enforce call recording laws in the U.S., it’s important to understand the jurisdictions of each: • Federal Government - does not have many laws governing call record¬ing, but does require one-party consent. • State Governments - have well-defined call recording laws and penalties, and 13 states require all-party consent. • The FCC - requires all parties in a recorded interstate call be notified either verbally or through a beep heard intermittently throughout the recording. Lawsuits involving interstate phone calls have been judged in BOTH the originating state and in the receiving state, so it’s best to abide by the stricter state guidelines when recording interstate calls.
  • 4. Share this: International Laws International call recording regulations vary widely, so be sure to consult the local government’s telecommunications authority before recording calls. Many countries don’t have specific laws regarding call recording, and operate on a case-by-case basis. And in some countries, corporate literature that declares the company records calls is considered consent. The 12 states that require all-party consent are: California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Pennsylvania and Washington. (Source: http://en.wikipedia.org/wiki/Telephone_recording_laws) 12
  • 5. Share this: Are Your Calls One Party or All-Party? State Consent Rules All states have their own laws regarding call recording. In most states one person on the call has to provide consent to the recording; however, 12 states require all parties on the call to give consent prior to recording. Sometimes all-party consent is given the misnomer of “two-party consent,” but if there are more than two people on the line, ALL must consent to the taping. YESYES YES YES NO
  • 6. Share this: One-Party Consent — At least one person in the conversation knows the call is being recorded—even if that person is the one conducting the recording. Thirty-eight states and Washington D.C. allow you to record calls you are on without informing the other parties you are doing so. All-Party Consent — Everyone in the conversation is told the call is being recorded either verbally or with an intermittent beep. If two people are talking and a third person joins the call, the third person must be notified the call is being recorded. What happens when a one-party state calls an all-party state? All state-to-state calls are subject to federal laws, so in this case it’s best to compare federal laws with laws for both states and abide by whatever is strictest. “It is almost always illegal to record a conversation to which you are not a party, do not have consent to tape, and could not naturally overhear.” - Reporters Committee for Freedom of the Press (Source: http://www.rcfp.org/reporters-recording-guide/introduction)
  • 7. Share this: Is That Legal? TRUE OR FALSE Federal courts say it’s okay to disclose the contents of an illegally intercepted call or communication. False: The federal government and most states declare this activity illegal. It’s okay to perform a hidden recording in a private place. False: Use of hidden recorders violates wiretap and eavesdropping laws and could bring a civil lawsuit for invasion of privacy. It is always legal to tape or film a face-to-face interview when your recorder or camera is in plain view. True: The consent of all parties is presumed in these instances. 1 T F T F T F 2 3
  • 8. Share this: What’s the Trouble? Understanding the Limits of Consent In general, you may record, film, broadcast or amplify any conversation where everyone involved has given consent. However, if you’re thinking about taping a conversation, it’s imperative you make certain that ALL consent requirements for BOTH state and federal laws have been met. Three examples of when it’s smartest NOT to record include: Criminal Purpose — Of course we know you never would, BUT recording a conversation in furtherance of a crime is illegal. Trespass — A person whose conversation is secretly recorded can sue for trespass and intrusion. Expectations of Privacy — Be careful how you use taped conversations because a person can sue if they have a reasonable expectation of privacy with regards to the use of the taped conversation. For example, you told someone their call could be used for training purposes, but instead, you used it in a national marketing campaign.
  • 9. Share this: “Companies that provide call center services to California consumers are increasingly being targeted in class action lawsuits under an arcane section of the state penal code that provides a civil right of action and statutory damages for monitoring or recording of confidential telephone conversations without the other party's knowledge or consent. The exposure in these cases can be enormous because the statute provides for $5,000 in statutory damages; an amount that the lawsuits allege is owed for each call. For example, a call center that receives 1,000 calls during a time in which the warning was not provided may find itself defending a $5 million lawsuit, and 10,000 calls means a $50 million lawsuit.” Paul G. Karlsgodt Partner at BakerHostetler Law Firm (Source: http://www.bakerlaw.com/)
  • 10. Share this: Is That a Yes or a No? Obtaining Caller Consent There are many different ways to obtain consent from callers in order to record a call, but the two most common are: pre-recorded messages and beep tones. Pre-Recorded Messages — Most companies inform callers their calls may be “monitored or recorded” via a pre-recorded message at the beginning of the call. This technique is best used before the caller is connected to a live agent. Beep Tones — These are specific beeps that are heard for the duration of the call and must be within 1260–1540 Hertz, and last .17-.25 seconds. The beeps must go off every 15 minutes for the entirety of the call.
  • 11. Share this: Recording Outbound Calls There are basically two ways to obtain consent for outbound calls, pre-recorded messages and announcements; however, neither of these solutions is without issue. Outbound pre-recorded messages warning, “This call will be recorded,” often lead to people disconnecting before the call con¬nects. And announcing the recording at the beginning of the call proves problematic when a phone switches hands mid-call. To comply with laws, the next agent must re-announce it’s a recorded line since every person on the phone must be informed of the recording. In short, if you do not want to open your call with a recorded notification, it’s best not to record outbound calls to all-party states. Calls recorded from jails and prisons are now being used to ensure that dangerous inmates stay locked up. CNN legal analyst Jeffrey Toobin says, "It's not unfair. It's prison. And when you're in prison, you lose certain rights, like the ability to have phone calls in privacy." (Source: http://www.cnn.com/2011/CRIME/03/26/jailhouse.calls.recordings/index.html)
  • 12. Share this: Should I Be Recording This? Knowing When It’s Best to Record There are several situations where a recorded call could mean the difference between victory and defeat in a court of law. To protect your company from false claims, it’s important to understand the times when you absolutely must record calls. Insurance Claims and Healthcare — Conversations about insurance claims should be recorded to provide clear evidence of what is agreed to and discussed in a claim. This eliminates he-said-she-said disputes and holds both parties to the facts of the discussion. In these situations, a recorded call not only protects your company, it can save you money in the case of untrue claims. Phone-Based Employees — Recorded calls are often used to train phone-based employees; however, these same recordings have the potential to resolve customer disputes and save the company money by preserving customer relationships.
  • 13. Share this: Billing Support — When goods or services are purchased by phone, the law requires that all disclaimers, terms and conditions of the purchase be clearly explained to the buyer. A recording not only proves that all disclaimers, terms and conditions were clearly explained, but can be used as proof that the agent followed the company processes. Complying with Industry Regulations — While many industry regulations do not require calls to be recorded, a recorded call can be used to settle a claim against a company’s behavior, proving compliance with regulations, and reducing liability and exposure. The National Association of Attorneys General estimates about 5,000,000 Americans are defrauded by telemarketers every year and one out of every five does not report the fraud, because they are embarrassed. Telemarketing investment scams alone amount to losses of $1 million an hour. Americans lose $40 billion a year to fraudulent telemarketers according to the National Fraud Information Center. (Source: http://www.dianamey.com/telemarketing-statistics/) 5,000,000DEFRAUDED AMERICANS $40BILLION $1MPER HOUR
  • 14. Share this: What Is TSR? Telemarketing Sales Rule The Telemarketing Sales Rule (TSR) applies to any plan, program, or campaign to sell goods or services, or obtain a charitable contribution through interstate phone calls. Designed to prevent fraud, the rule requires telemarketers to make certain disclosures and gives state law officers the authority to prosecute fraudulent telemarketers. It also helps consumers stop unwanted calls by instructing them to tell telemarketers to, “Put me on your DO-NOT-CALL list.” The rule applies whether or not the telemarketer: • Initiates or receives calls to or from consumers • Makes or receives calls using low- or high-tech equipment, (like automated systems) • Makes calls from outside the U.S. to consumers in America
  • 15. Share this: Any company that conducts business over the phone can be subject to the TSR Rule even if the call is: • An unsolicited call from a consumer • A response to a general media advertisement or direct mail solicitation • An outbound non-sales call such as a customer service call • An upsell following an initial transaction “Failure to provide any of the required information in a ‘clear and conspicuous’ manner, before the consumer pays for goods or services offered, is a deceptive telemarketing act or practice that violates TSR, and subjects a seller or telemarketer to a $10,000 fine for each violation.” (Source: http://business.ftc.gov/documents/bus27-complying-telemarketing-sales-rule)
  • 16. Share this: Why Comply? TSR Is Serious Business TSR is a far-reaching and broadly interpreted law that’s heavily enforced by the FTC, so if you find yourself in a situation where you aren’t sure whether or not you need to comply, it’s smartest just to comply because not complying can be costly. Some examples of times you should comply are: Shipping — When you take orders by phone, you may choose to provide prospective customers with updated shipment information. This may differ from what you said or implied about the shipment time in your advertising. While the updated shipment information you provide on the phone supersedes any shipment representation you made in the advertising, you must have a reasonable basis for the updated shipment information. Upselling — A consumer calls a store to inquire about the price of an oven. Because the call is not the result of a solicitation by the seller, the initial inquiry is exempt from TSR. However, if the seller tries to upsell a refrigera¬tor during the same call, the upsell transaction is subject to TSR.
  • 17. Share this: Court Orders Cross-Border Telemarketers to Pay Nearly $5 Million: Canadian Defendants Fraudulently Pitched Advance-Fee Credit Cards and “Free” Gifts (Source: http://www.ftc.gov/opa/2008/05/pacliberty.shtm) Pacific Liberty must pay $4,997,695.60 The FTC charged Canadian-based company, Pacific Liberty, with using outbound telemarketing to fraudulently call United States consumers. For an advance fee of $319, which was electronically debited from consumers’ bank accounts, the defendants promised they could deliver Visa or MasterCard credit cards, along with free gifts such as cell phones. No consumers who paid the money received either credit cards or “complimentary” gifts. Accordingly, the court found the defendants guilty of violating Section 5 of the FTC Act and the TSR and ordered them to pay $4,997,695.60.
  • 18. Share this: Play It Smart ShoreTel Knows Best We hope our eBook on call recording has helped you better understand where your rights and the rules converge. To learn more about ShoreTel Sky and download other related eBooks, white papers, and view product demos, please visit http://www.shoretelsky.com/resources. This eBook and the information contained on this website is offered only for general informational and educational purposes. It is not offered as and does not constitute legal advice or legal opinions. This eBook and the website in which it resides contains many pages of hyperlinks to other resources on the Internet. These links are provided as citations and aids to help you identify and locate other Internet resources that may be of interest, and are not intended to state or imply that ShoreTel sponsors, is affiliated or associated with, or is legally authorized to use any trade name, registered trademark, logo, legal or official seal, or copyrighted symbol that may be reflected in the links.