Philbrick v. Commissioner
United States Tax Court
One of the petitioners, an inventor, granted an exclusive license to a corporation to make, use, and sell, throughout the world, machines embodying the inventions set forth in certain letters patent and applications for letters patent, and also any and all improvements and inventions relating to such machines which he might devise or acquire during the term of such license agreement.
Read the full summary
One of the petitioners, an inventor, granted an exclusive license to a corporation to make, use, and sell, throughout the world, machines embodying the inventions set forth in certain letters patent and applications for letters patent, and also any and all improvements and inventions relating to such machines which he might devise or acquire during the term of such license agreement. Held, that the transfer of patent rights effected by such license agreement must, under the provisions of section 117 (q) of the 1939 Code, be considered the sale or exchange of capital assets held for more than…
1Opinion of the Court
OPINION.
Pierce, Judge:
The notice of deficiency herein was issued prior to the enactment of Public Law 629,1 approved on June 29, 1956, which amended section 117 of the Internal Revenue Code of 1939 (relating to capital gains and losses) by adding at the end thereof a new subsection (q), relating to transfer of patent rights. Also the trial of the present case was had, and the briefs of both parties were filed, prior to such enactment. The petitioners have, however, now invoked said amendatory statute, by letter addressed to the Court with a copy mailed to respondent’s counsel. The respondent…
2Cases cited3 opinions
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- Myers v. Comm'rUnited States Tax Court · 1946
- O'Meara v. CommissionerUnited States Tax Court · 1947
3Cited by56 opinions
- Seligman v. CommissionerUnited States Tax Court · 1985
- Johnsen v. CommissionerUnited States Tax Court · 1984
- United States Mineral Products Co. v. CommissionerUnited States Tax Court · 1969
- Best Lock Corp. v. CommissionerUnited States Tax Court · 1959
- Illinois Power Co. v. CommissionerUnited States Tax Court · 1986
51 more not listed; retrieve them via the Exa API.