The Conde Nast Publications, Inc., and Cross-Appellant v. United States of America, and Cross-Appellee

GURFEIN, Circuit Judge:

The taxpayer, Conde Nast Publications, Inc., brought a suit in the United States District Court for the Southern District of New York, under the jurisdiction conferred by 28 U.S.C. § 1346(a)(1), for a refund of income taxes paid for the calendar years 1967 and 1968. The case turned on whether certain installment payments received by the taxpayer in connection with the sale of its pattern business to the Butterick Company and the transfer of the use of the trademark “Vogue” to Butterick in connection therewith were payments of royalties for a license, in which case the…