Shepard v. Comm'r
United States Tax Court
The petitioner, an inventor, developed a high-speed printer for use in conjunction with electronic computers. Thereafter he and the National Cash Register Co. entered into an agreement and two supplemental agreements under which such company obtained from him both a nonexclusive license with respect to two patents which related to certain aspects of the printer, and the technological know-how which was necessary to the manufacture of the printer.
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The petitioner, an inventor, developed a high-speed printer for use in conjunction with electronic computers. Thereafter he and the National Cash Register Co. entered into an agreement and two supplemental agreements under which such company obtained from him both a nonexclusive license with respect to two patents which related to certain aspects of the printer, and the technological know-how which was necessary to the manufacture of the printer. Held, that the amounts received by petitioner from the National Cash Register Co. during the years in question related solely to the technological…
1Opinion of the Court
AtkiNS, Judge:
The respondent determined deficiencies in income tax for the taxable years 1965,1966, and 1967 in the respective amounts of $20,532.32, $17,012.64, and $44,736.44. The only issue for decision is whether amounts received by Francis H. Shepard, Jr., during the above taxable years from the National Cash Register Co. represented royalty payments made by such company pursuant to a nonexclusive license under patents owned by Shepard or a nonexclusive license to use certain technology and, hence, ordinary income to him, or whether such, amounts represented, proceeds from the sale by…
2Cases cited11 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- United States v. Dubilier Condenser CorpSupreme Court of the United States · 1933
- Danielson v. CommissionerUnited States Tax Court · 1965
- Tabor v. . HoffmanNew York Court of Appeals · 1889
- Warner-Lambert Pharmaceutical Co. v. John J. Reynolds, Inc.District Court, S.D. New York · 1959
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3Cited by4 opinions
- Smith v. CommissionerUnited States Tax Court · 1984
- Fedders Corp. v. CommissionerUnited States Tax Court · 1979
- Shepard v. Comm'rUnited States Tax Court · 1972
- Smith v. CommissionerUnited States Tax Court · 1984