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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”
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