Dreymann v. Comm'r
United States Tax Court
1. In September 1932 petitioner orally promised to give his daughter a one-half interest in a process for moisture-proofing paper and paper board if she would devote her full time in helping him produce the process. Petitioner's daughter agreed and complied with the terms of the agreement by rendering substantial and vital services to petitioner from September 1932 to 1942 in the invention, development and improvement of the process.
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1. In September 1932 petitioner orally promised to give his daughter a one-half interest in a process for moisture-proofing paper and paper board if she would devote her full time in helping him produce the process. Petitioner's daughter agreed and complied with the terms of the agreement by rendering substantial and vital services to petitioner from September 1932 to 1942 in the invention, development and improvement of the process. The process was invented sometime in the period between April 1933 and August 30, 1933. Held, as of the moment the moisture-proofing process was reduced to…
1Opinion of the Court
OPINION.
Hill, Judge:
The respondent urges that petitioner assigned only his future earnings or income and that under the rule of Lucas v. Earl, 281 U. S. 11, and Helvering v. Horst, 311 U. S. 112, all of the “royalty” income here involved is includible in petitioner’s gross income. We do not agree with this contention.
It is well settled that agreements to assign future inventions may be specifically enforced. Littlefield v. Perry, 88 U. S. 205, 226; Conway v. White, 9 Fed. (2d) 863, 866; Ellis, Patent Assignments and Licenses (2d Ed.), § 73, p. 81. In Conway v. White, supra, the court stated…
2Cases cited7 opinions
- Helvering v. HorstSupreme Court of the United States · 1940
- Littlefield v. PerrySupreme Court of the United States · 1875
- Lucas v. North Texas Lumber Co.Supreme Court of the United States · 1930
- Myers v. Comm'rUnited States Tax Court · 1946
- Nicholson v. CommissionerUnited States Tax Court · 1944
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