Rollman v. Comm'r
United States Tax Court
1. A partnership of which petitioners were members transferred certain patent rights by agreement conveying "an exclusive license * * * for the manufacture and sale of shoes."
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1. A partnership of which petitioners were members transferred certain patent rights by agreement conveying "an exclusive license * * * for the manufacture and sale of shoes." Held, amounts received pursuant to the agreement are royalties derived from a licensing agreement and not long-term capital gain from the sale of a capital asset, since the contract did not effect a transfer of all of the rights of the patentee, i. e., the right to make, the right to use, and the right to vend. 2. The respondent disallowed deductions for depreciation on two patents used by petitioners in their trade or…
1Opinion of the Court
OPINION.
Fisher, Judge:
The first issue presented is whether amounts received by The Rollmans in 1947,1948, and 1949, pursuant to the agreement of December 19,1940 (set out in our Findings of Fact), are ordinary income or long-term capital gain. Petitioners contend that the payments in question are based on a sale of the Rajeh patent, a capital asset, whereas respondent determined that the payments represent royalties derived from a licensing agreement. The agreement in question grants to Rikol on behalf of The Rollmans “an exclusive license (except for two non-exclusive licenses now…
2Cases cited16 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- United States v. General Electric Co.Supreme Court of the United States · 1926
- Myers v. Comm'rUnited States Tax Court · 1946
- Mitchell v. HawleySupreme Court of the United States · 1873
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3Cited by19 opinions
- Bell Intercontinental Corporation v. The United StatesUnited States Court of Claims · 1967
- Marco v. CommissionerUnited States Tax Court · 1955
- Coplan v. Comm'rUnited States Tax Court · 1957
- Hickman v. Comm'rUnited States Tax Court · 1958
- Dairy Queen of Oklahoma, Inc. v. CommissionerUnited States Tax Court · 1956
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