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6. Credit Card Application Forms
Respondent contends that petitioner helped PB&T market the
affinity credit cards, that petitioner's employees "regularly"
took credit card applications to chapter meetings. We have not
so found because the record does not indicate how often
petitioner's employees took applications to chapter meetings or
how often chapters met. Petitioner had application forms
available for members, took an unspecified number of application
forms to some meetings with its other membership information, and
mailed some in response to specific requests from members. We
disagree that petitioner's actions are fairly characterized as
marketing or services for PB&T, or that PB&T paid petitioner for
these minimal actions. These actions are too insignificant to
preclude a finding that petitioner's income from the credit card
program is a royalty.
7. Advertising
Respondent contends that Alumnus did not accept paid
advertising before 1990, on the basis of the fact that Andrews
and Deann Williams wrote letters which refer to the September
1990 issue of Alumnus as the first to accept paid advertising.
Grafton, who, unlike Andrews, worked for petitioner before 1990,
testified that Alumnus accepted paid advertising in 1988 and
possibly earlier. PB&T bought a 3/4-page color advertisement
featuring the person who broadcasts MSU football games in the
fall 1988 issue of Alumnus and paid for artwork for the ad.
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