Republic Automotive Parts, Inc. v. Commissioner
United States Tax Court
Petitioner licensed a Brazilian corporation to use petitioner's trade name, trademark, and technical knowhow in exchange for 5-percent royalty payments. The agreement provided for a 15-year term. Petitioner retained the right to terminate the agreement if the licensee did not maintain the quality of the products sold under petitioner's trade name and trademark, and licensee could not assign its interest without petitioner's written consent.
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Petitioner licensed a Brazilian corporation to use petitioner's trade name, trademark, and technical knowhow in exchange for 5-percent royalty payments. The agreement provided for a 15-year term. Petitioner retained the right to terminate the agreement if the licensee did not maintain the quality of the products sold under petitioner's trade name and trademark, and licensee could not assign its interest without petitioner's written consent. An American corporation subsequently induced the licensee to breach the agreement. Petitioner sued the American corporation in tort and recovered $…
1Opinion of the Court
Republic Automotive Parts, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Republic Automotive Parts, Inc. v. Commissioner
Docket No. 7541-74
United States Tax Court
68 T.C. 822; 1977 U.S. Tax Ct. LEXIS 59;
August 30, 1977, Filed
Decision will be entered for the respondent.
Petitioner licensed a Brazilian corporation to use petitioner's trade name, trademark, and technical knowhow in exchange for 5-percent royalty payments. The agreement provided for a 15-year term. Petitioner retained the right to terminate the agreement if the licensee did not maintain the quality of the products…
2Cases cited17 opinions
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
- Durkee v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1947
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