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(ABS), and not the Sierra Club, was responsible for developing
promotional materials. ABS submitted a proposed marketing plan
which the Sierra Club reviewed. Id. at 336. ABS placed
advertisements in the Sierra Club's magazine and paid for them on
the same terms that applied to unrelated advertisers. Id. The
Sierra Club could pay for direct mail or other solicitations.
Id. at 313. If the Sierra Club did so, any royalties payable by
ABS were adjusted. Id. ABS was responsible for soliciting
members. Id. at 337. ABS was obligated to develop all
promotional materials. If the Sierra Club paid production and
mailing costs, ABS would compensate it for those costs. Id. at
312. The agreement in Sierra Club required that the Sierra Club
fully cooperate with ABS by encouraging its members to acquire
and use the services. Id. at 313. Petitioner's activities are
substantially similar to those of the Sierra Club. Petitioner's
solicitation activities were de minimis and were intended
primarily to protect petitioner's relationship with its members
and to keep its alumni aware of their ties to the University of
Oregon.
b. Petitioner's Providing of Services To Promote
the Affinity Credit Card Program
Respondent contends that petitioner's income from the credit
card activity was not a royalty because petitioner assisted USNB
in making solicitations, made its own solicitations, and provided
personal services to cardholders and prospective cardholders. We
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