Earl R. Wiseman, District Director of U.S. Treasury Department, Internal Revenue Service v. Halliburton Oil Well Cementing Company, a Corporation

PICKETT, Circuit Judge.

After payment of a deficiency assessment for 1955 income taxes, Halliburton Oil Well Cementing Company brought this action for a refund. The question presented is whether payments received under a contract pursuant to which Halliburton agreed to the termination of an exclusive license to use and to grant sub-licenses for the use of a patented process in exchange for a non-exclusive license and one-third of the royalties received from third party licensees shall for income tax purposes be treated as ordinary income or as gain from the sale or exchange of a capital asset…