Christensen v. Commissioner
United States Board of Tax Appeals
Taxpayer owned a patent expiring in 1916, license to use which had been granted to another party by contract providing for royalties. Beginning December 1, 1906, the licensee failed to make payment of royalties, but continued to use the patent. In 1909 taxpayer sued for infringement. In 1930 final judgment was entered for taxpayer, awarding him $296,511.44 on account of damages and interest.
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Taxpayer owned a patent expiring in 1916, license to use which had been granted to another party by contract providing for royalties. Beginning December 1, 1906, the licensee failed to make payment of royalties, but continued to use the patent. In 1909 taxpayer sued for infringement. In 1930 final judgment was entered for taxpayer, awarding him $296,511.44 on account of damages and interest. This sum represented the amount of royalties provided by the contract plus interest to date of expiration of the patent, of which $103,589.34 represented the royalties and interest accrued to March 1,…
1Opinion of the Court
opinion.
Yan Fossan:
This proceeding was brought to redetermine a deficiency in the income taxes of the petitioner for the year 1930 in the sum of $19,122.74.
The issues are:(1) Whether the entire amount, $296,511.44, of a judgment paid to the petitioner in 1930 as a result of a suit for patent infringement was income to him, or if such sum should be reduced by $103,589.34, representing the amount equivalent to royalties and interest arising prior to March 1, 1913.(2) The inclusion by the respondent of certain portions of the judgment which were garnisheed by the petitioner’s creditors.
The facts…
2Cases cited3 opinions
- Southern Pacific Co. v. LoweSupreme Court of the United States · 1918
- Park v. GilliganDistrict Court, S.D. Ohio · 1921
- Safety Car Heating & Lighting Co. v. United StatesDistrict Court, D. New Jersey · 1933
3Cited by1 opinion
- Christensen v. CommissionerUnited States Board of Tax Appeals · 1935