Don and Irene Kueneman, John R. Kueneman, and Edmund W. And Ella M. Harrell v. Commissioner of Internal Revenue

POOLE, Circuit Judge:

This is an appeal by five taxpayers from a decision of the United States Tax Court determining deficiencies in their federal income taxes for the years 1971 and 1972. During thése years, appellants Don and Irene Kueneman, John Kueneman, and Edmund and Ella Harrell reported royalty payments received from an exclusive transfer of patent rights within a specified geographical area as long-term capital gains on their federal income tax returns. The Tax Court held that this did not constitute a transfer of “all substantial rights” to the patent within the meaning of Section…