Alumni Association of the University of Oregon, Inc. - Page 15

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          DAV's mailing list was available for rental.  Id. at 1185.  DAV             
          employed two full-time employees to administer its list rentals.            
          Disabled Am. Veterans v. Commissioner, 942 F.2d at 311.                     
               Petitioner's mailing list rental activity is unlike DAV's              
          rental activity.  Petitioner received income from the use of                
          its mailing list only for:  (a) Alumni trips in 1990 and 1991;              
          (b) alumni class rings and commemorative watches; and (c) the               
          affinity credit card program at issue here.                                 
               Unlike DAV, petitioner did not regularly rent its mailing              
          list.  Petitioner was not involved in the direct mail industry.             
          Petitioner did not issue rate cards.  Petitioner used minimal               
          staff time to administer its rentals.  Petitioner allocated 10              
          percent of Super's salary to develop and implement the affinity             
          credit card program for fiscal year 1986-87 and from July 1987 to           
          October 1987.  Petitioner allocated 5 percent of Super's salary             
          to the affinity credit card program from November 1987 to April             
          1988.  The record does not indicate that petitioner allocated               
          any salary to the affinity credit card program for the years in             
          issue.  We conclude that petitioner's use of its mailing list is            
          entirely consistent with classifying the resulting income as a              
          royalty.                                                                    
               3.  Whether USNB's Payments Were for Services:  Extent                 
                    of Petitioner's Role                                              
               Respondent contends that USNB paid to obtain petitioner's              
          cooperation and assistance.                                                 





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