Blake v. Comm'r
United States Tax Court
1. Petitioner owned a patent on a leveling device. He granted an exclusive license to American in 1954, limited to the public seating field, and an exclusive license to Ever-Level in 1960, limited to the restaurant field. He received royalties under both licenses as well as damages for patent infringement by others.
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1. Petitioner owned a patent on a leveling device. He granted an exclusive license to American in 1954, limited to the public seating field, and an exclusive license to Ever-Level in 1960, limited to the restaurant field. He received royalties under both licenses as well as damages for patent infringement by others. Held, petitioner retained valuable rights at the time of the American license and is not entitled to capital gain treatment of royalties received thereunder under sec. 1235, I.R.C. 1954. Fawick v. Commissioner, 436 F.2d 655 (6th Cir. 1971), revg. 52 T.C. 104 (1969), followed under…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined deficiencies of $1,447.20 and $26,177.38 in the petitioners’ Federal income taxes for 1969 and 1970, respectively. The issues now presented for decision are:(1) Whether amounts received with respect to certain patent licensing agreements are taxable as long-term capital gain under section 12351 or as ordinary income;(2) Whether a portion of damages received in 1970 in settlement of a patent infringement suit should have been accrued as income in 1968;(3) Whether the surrender in 1969 of the right to receive certain royalties gave rise to a deduction or…
Also in this document: Dissent.
2Cases cited36 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Continental Tie & Lumber Co. v. United StatesSupreme Court of the United States · 1932
- United States v. Safety Car Heating & Lighting Co.Supreme Court of the United States · 1936
- H. Liebes & Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1937
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3Cited by10 opinions
- Deere & Company, Plaintiff-Appellee/cross-Appellant v. International Harvester Company, Defendant-Appellant/cross-AppelleeCourt of Appeals for the Federal Circuit · 1983
- Litton Systems, Inc. v. Sundstrand Corporation, a Delaware Corp.Court of Appeals for the Federal Circuit · 1984
- Kueneman v. CommissionerUnited States Tax Court · 1977
- Great Plains Chemical Co. v. Micro Chemical, Inc.District Court, D. Colorado · 1985
- David R. Blake and Betty H. Blake, and Cross-Appellants v. Commissioner of Internal Revenue, and Cross-AppelleeCourt of Appeals for the Sixth Circuit · 1980
5 more not listed; retrieve them via the Exa API.