Nestle Co. v. Commissioner
United States Tax Court
Held, licensing agreements between petitioner and its parent organization for petitioner's use of patented or secret processes developed by the parent organization for making an instant coffee (Nescafe), an instant cocoa milk drink (Quik), and an acidified baby food milk product (Pelargon) were bona fide and valid, and the royalties paid by petitioner to its parent organization under the terms of the licensing agreements were reasonable in amount and deductible by petitioner…
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Held, licensing agreements between petitioner and its parent organization for petitioner's use of patented or secret processes developed by the parent organization for making an instant coffee (Nescafe), an instant cocoa milk drink (Quik), and an acidified baby food milk product (Pelargon) were bona fide and valid, and the royalties paid by petitioner to its parent organization under the terms of the licensing agreements were reasonable in amount and deductible by petitioner as ordinary and necessary business expense.
1Opinion of the Court
The Nestle Company, Inc. (Formerly: Nestle's Milk Products, Inc.) v. Commissioner. The Nestle Company, Inc. (Successor to Nestle's Chocolate Company, Inc.) v. Commissioner.
Nestle Co. v. Commissioner
Docket Nos. 73051, 73052.
United States Tax Court
T.C. Memo 1963-14; 1963 Tax Ct. Memo LEXIS 329; 22 T.C.M. (CCH) 46; T.C.M. (RIA) 63014;
January 16, 1963
Held, licensing agreements between petitioner and its parent organization for petitioner's use of patented or secret processes developed by the parent organization for making an instant coffee (Nescafe), an instant cocoa milk drink (Quik), and an…
2Cases cited15 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- De Sollar v. HanscomeSupreme Court of the United States · 1895
- Warner-Lambert Pharmaceutical Co. v. John J. Reynolds, Inc.District Court, S.D. New York · 1959
- St. Paul Plow Works v. StarlingSupreme Court of the United States · 1891
- Differential Steel Car Co. v. Comm'rUnited States Tax Court · 1951
10 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- R. T. French Co. v. CommissionerUnited States Tax Court · 1973
- R. T. French Co. v. CommissionerUnited States Tax Court · 1973