John Sann and Marianne Sann, et al. - Page 56

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          these machines placed".  He was told that it would not be                   
          difficult to place the machines because the recyclers imposed               
          little or no cost on end-users and because end-users would be               
          relieved of the financial burden of removing their plastic waste.           
          Maxfield understood that among the criteria required of end-users           
          was the willingness to "spend something--roughly $5,000 or                  
          $6,000, if necessary, for the wiring of the machine."                       
               Maxfield allegedly was told by Roberts and Wible in 1981,              
          and persons at PI in 1982, that the Sentinel EPE recycler was               
          unique and had a "tremendous head-start" over its competitors.              
          He claims that he understood that competing recyclers were not as           
          efficient as the Sentinel EPE recyclers and were not easily                 
          placed with end-users.  However, despite the purported                      
          technological edge PI supposedly enjoyed over its competitors,              
          the offering memoranda warned that "PI does not intend to apply             
          for a patent for protection against appropriation and use [of its           
          trade secrets] by others."  In addition, the Sentinel recyclers             
          were not unique.  By 1981, several machines capable of densifying           
          low density materials such as polyethylene and polystyrene were             
          already on the market, including the Foremost Densilator,                   
          Nelmor/Weiss Densification System (Regenolux), Buss-Condux                  
          Plastcompactor, and Cumberland Granulator.  In contrast to the              
          Sentinel EPE recycler, which was priced at $1,162,666, these                
          machines ranged in price from $20,000 to $200,000.  See Provizer            
          v. Commissioner, T.C. Memo. 1992-177.                                       




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