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Hoyos. Gamesa apparently never received any of the funds that
were transferred by petitioner to Rubbik under the above
consulting agreements.
During the years in issue, Gamesa did not charge
distributors who distributed Gamesa’s products in Mexico for
services relating to product development, design, packaging, or
marketing of the products. Further, Mexican distributors of
Gamesa’s products apparently did not make payments to Gamesa
relating to the “Gamesa” or “g” trademarks.
Effective October 1, 1990, PepsiCo, Inc. (PepsiCo) acquired
a controlling interest in Gamesa, but petitioner continued as the
sole authorized distributor of Gamesa’s products in the United
States. Until August of 1991, petitioner continued to distribute
Gamesa’s products in the United States bearing the “g” trademark,
and petitioner continued to use the “g” trademark in the United
States to advertise Gamesa's products.
After PepsiCo acquired Gamesa, petitioner no longer
transferred funds to Cremin and Rubbik.
On August 6, 1991, at PepsiCo’s insistence, Gamesa
terminated its distribution agreement with petitioner. At the
same time, petitioner, Cremin, and Rubbik agreed to transfer back
to Gamesa or otherwise cancel any and all rights they possessed
to the “g” trademark. PepsiCo required this cancellation of
rights to the “g” trademark because PepsiCo could not determine
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