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to petitioner. In addition, the amended license agreement
granted to petitioner the right to two computer software
programs, including software that prepares price estimates for
printing jobs. An employee/director of petitioner updated the
computer software as necessary. Petitioner did not solicit bids
for the computer software from other companies before licensing
it from DM.
Petitioner also received a list of DM's commercial customers
from its 1985 business. Neither the original license agreement
nor the subsequent amendments specifically identified a customer
list as a licensed asset. However, both parties understood and
intended that the agreement conveyed to petitioner the right to
use DM's customer list. DM had previously licensed the same
customer list to SMP in 1985. When SMP's license terminated,
DM's 1985 customer list reverted to DM pursuant to the license
agreement.
Petitioner was formed without any capital contribution from
its members and primarily relied on DM, other Nyingma
organizations, and members of the Nyingma community for
financing. DM and another Nyingma entity financed petitioner's
purchase of the printing equipment. Petitioner borrowed money
from the Nyingma Institute and from various individuals,
including Petranker, for startup capital. Petitioner also
received favorable credit terms from suppliers that enabled it to
start business with capital contributions from its members. In
1989, DM and the Meditation Center financed petitioner's purchase
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