Seattle Brewing & Malting Co. v. Comm'r
United States Tax Court
Where under the terms of a contract the taxpayer, by the exercise of an option, acquired the "exclusive" and "perpetual" right to manufacture and sell alcoholic malt beverages under the trade names "Rainier" and "Tacoma" in a limited territory for a consideration of $ 1,000,000, held, (1) the right to use the trade name in connection with the manufacture and sale of alcoholic malt beverages is property which the owner thereof could license or assign to another; (2) the grant…
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Where under the terms of a contract the taxpayer, by the exercise of an option, acquired the "exclusive" and "perpetual" right to manufacture and sell alcoholic malt beverages under the trade names "Rainier" and "Tacoma" in a limited territory for a consideration of $ 1,000,000, held, (1) the right to use the trade name in connection with the manufacture and sale of alcoholic malt beverages is property which the owner thereof could license or assign to another; (2) the grant of an exclusive and permanent right in a limited territory was an assignment of such right; (3) the taxpayer acquired a…
1Opinion of the Court
OPINION.
HaRRON, Judge:
The only remaining issue for decision is whether petitioner is entitled to deduct from its income for the years 1940 and 1941 any portion of the $1,000,000 which it agreed on July 1, 1940, to pay to Eainier upon the exercise of the option of electing to terminate all royalties payable under the contract of April 23, 1935. None of the $1,000,000 was paid by petitioner in 1940. Two hundred thousand $200,000) dollars, with interest, was paid in 1941 and $800,-000, with interest, was paid in 1942.
The petitioner contends that Eainier did not sell to it the right to use its…
2Cases cited11 opinions
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- LaBelle Iron Works v. United StatesSupreme Court of the United States · 1921
- Littlefield v. PerrySupreme Court of the United States · 1875
- Rude v. WestcottSupreme Court of the United States · 1889
- Moore v. MarshSupreme Court of the United States · 1869
6 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- Rainier Brewing Co. v. CommissionerUnited States Tax Court · 1946
- Fields v. Comm'rUnited States Tax Court · 1950
- United States Mineral Products Co. v. CommissionerUnited States Tax Court · 1969
- Merck & Co. v. SmithCourt of Appeals for the Third Circuit · 1958
- Herwig v. United StatesUnited States Court of Claims · 1952
23 more not listed; retrieve them via the Exa API.