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agreements believed that JDP would profit from the anticipated
increased yield of jojoba seed resulting from the research and
development project. They also contend that JDP benefitted from
the R & D Agreement by obtaining the right to use any
"discoveries" resulting from the research or experimentation and
by the joint venture TJV using those "discoveries" after the
research and development period ended. We disagree.
We believe that JDP received no economic benefit from its
"right" to use "discoveries, technology, and other information"
resulting from the putative research or experimentation. The
parties fully anticipated from the beginning that any such
results were to be used by HJI and disbursed widely and freely
throughout the jojoba industry. We doubt that a disinterested
third party under similar circumstances would have been willing
to pay for the "right" to use any such "discoveries".
Furthermore, we do not agree with petitioners that the R & D
Agreement had a fair market value of $382,000, as estimated by
petitioners' expert. The nutrient studies HJI conducted on
Turtleback I by their very nature were applicable primarily, if
not exclusively, to that site. Gross, however, made no
adjustment in his valuation of the R & D Agreement for its
limited applicability.
In addition, Gross failed to take into consideration the
value of the additional rights arising from other agreements the
parties executed simultaneously with the R & D Agreement. No one
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