Owens Bottle Co. v. Commissioner
United States Board of Tax Appeals
1. A taxpayer possessing the sole and exclusive right and license to practice certain inventions and make and use certain machines covered by certain United States letters patent "and any and all patents which may result from the application for patents" recited in the license agreement "for and during the respective terms for which said patents are, or may be granted, in and throughout the United States * * * and use and sell the products of such processes and machines,…
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1. A taxpayer possessing the sole and exclusive right and license to practice certain inventions and make and use certain machines covered by certain United States letters patent "and any and all patents which may result from the application for patents" recited in the license agreement "for and during the respective terms for which said patents are, or may be granted, in and throughout the United States * * * and use and sell the products of such processes and machines, together with the right to grant to others sublicenses, or other rights under this agreement" is entitled to a deduction…
1Opinion of the Court
*1208OriNION.
Smith:
The first question to be decided is whether the petitioner is entitled to any deduction for the fiscal year ended September 80, 1917, on account of the exhaustion of a license agreement of October 16, 1903. It contends that under the provisions of section 12 (a) of the Revenue Act of 1916, as amended by the Revenue Act of 1917, it is entitled to a deduction of an amount equal to such part of the March 1,1913, valué of the license agreement, upon which it claims a value at that date of approximately $13,000,000, as is properly alloca-ble to the taxable period.
The respondent…
2Cases cited2 opinions
- Pullman's Palace Car Co. v. Central Transportation Co.Supreme Court of the United States · 1898
- Ray Consolidated Copper Co. v. United StatesSupreme Court of the United States · 1925
3Cited by3 opinions
- B. F. Sturtevant Co. v. United StatesDistrict Court, D. Massachusetts · 1937
- Owens Bottle Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Syracuse Food Prods. Corp. v. CommissionerUnited States Board of Tax Appeals · 1930