Dharma Enterprises - Page 31

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          did not attribute the name Dharma to DM's religious printing                
          business or state that they became petitioner's customers because           
          they associated the word Dharma with DM.  Petitioner attracted              
          customers by the quality of its printing and low prices.  There             
          is no evidence that petitioner's customers associated its quality           
          and prices with DM's business.  At most, its customers associated           
          its name with Buddhism in general and not to DM's printing                  
          business.  DM has never used the names "Dharma Enterprises" or              
          "Skillful Means Press" in the printing business.  DM did use the            
          name "Amber Lotus" beginning in 1986.  Although there is no                 
          evidence as to whether DM made Amber Lotus into a profitable                
          business before licensing it to petitioner, the name had some               
          value to petitioners.  During the years in issue, petitioner's              
          Amber Lotus division accounted for approximately 7 percent of               
          gross sales.  We hold that an unrelated third party would have              
          paid royalties for the trade names and trademarks in the amount             
          determined by AVG.                                                          
               In addition to being a recognized trade name in the printing           
          business, petitioner maintains that the Dharma name identifies it           
          as a Dharma-authorized organization and enables it to hire low-             
          wage employees.  The license agreement, as amended, purports to             
          grant to petitioner the right to present itself as an                       
          organization sanctioned by an active Dharma lineage.  Petitioner            
          maintains that AVG's comparison of the Dharma name with quick-              
          print trade names does not account for this value.  We determine            
          that this alleged asset does not justify the royalty payments               


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