Pan American Foods, Inc. - Page 10

                                       - 10 -                                         
          of the services performed by Gamesa to customize Gamesa’s                   
          products for U.S. markets, that product manufacturers do not                
          customarily charge distributors directly for services similar to            
          those performed by Gamesa, and therefore, that the funds                    
          petitioner transferred to Cremin and Rubbik did not constitute              
          ordinary and necessary business expenses.                                   
               We agree with respondent.  The ordinary and necessary nature           
          of the funds transferred by petitioner to Cremin and Rubbik and             
          petitioner’s arguments in support thereof are not supported by              
          the evidence.                                                               
               Petitioner’s argument assumes that Gamesa somehow received             
          the benefit of the funds that petitioner transferred to Cremin              
          and Rubbik.  The facts indicate, however, that Gamesa did not               
          receive any such benefit.  Nor does the record indicate that the            
          funds transferred to Cremin and Rubbik facilitated in any way               
          petitioner’s qualification for gray market protection for                   
          Gamesa's products.                                                          
               With regard to the $2,293,626 in funds transferred to                  
          Cremin, the facts do not indicate that Cremin owned any rights to           
          the “g” trademark when it entered into the alleged licensing                
          agreement with petitioner.  Petitioner’s expert’s opinion                   
          regarding the ownership of the “g” trademark was generally                  
          unpersuasive, not supported by the evidence, and not credible.              
               Also, for the years in issue, Gamesa (not petitioner, not              
          Cremin, and not Rubbik) was the registered U.S. owner of the “g”            




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011