- 19 -
overall cost to B&L to produce a pair of sunglasses was reduced.
From 1982 through 1987, B&L Hong Kong leased facilities in
the Watt's Industrial Building in Hong Kong for its sunglass
assembly operations. During the period 1983 through 1985, B&L
Hong Kong leased 1,200 square feet for those operations. During
1986 and 1987, it increased the amount of space it leased to
8,000 square feet, 4,000 square feet of which was used for
production and 4,000 square feet of which was used as a ware-
house. B&L Hong Kong leased additional space for offices for
managers and other personnel involved in its sunglass assembly
operations.
In addition to assembling sunglasses, B&L Hong Kong con-
tinued to act as a marketing and distribution company for other
B&L products, including sunglasses assembled outside of Hong
Kong.
Licenses of Intangibles to B&L Ireland and to B&L Hong Kong
Pursuant to license agreements, B&L Inc. granted to B&L
Ireland and B&L Hong Kong, respectively, nonexclusive licenses to
use certain technology relating to sunglass assembly.19 Pursu-
19 Except as stated below, the sunglass assembly operations
conducted by B&L Ireland and by B&L Hong Kong were substantially
the same. The sunglass assembly operations conducted by B&L Inc.
in Rochester with respect to metals, plastics, Wings, and
leathers were substantially similar to the sunglass assembly
operations conducted by B&L Ireland with respect to those styles
of sunglasses and by B&L Hong Kong with respect to those styles
except plastics that B&L Hong Kong did not produce. Even at its
(continued...)
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