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tapes were inextricably connected. The intangible information
could not exist without the tangible medium. See Bank of Vermont
v. United States, 61 AFTR 2d 88-788, at 88-790, 88-1 USTC par.
9169, at 83,250 (D. Vt. 1988). Thus, the subject property was
the tape that contained the seismic data. In Comshare, the court
found that the source code was the subject property, but like the
seismic data in Texas Instruments, that it could not exist
without the disks upon which it was stored. Thus, there the
subject property was the unit consisting of the tapes and disks
which contained the source code. In Ronnen v. Commissioner,
supra, the subject property was the source code. We did not find
the same "inextricable connection" that existed between the
seismic data and tapes in Texas Instruments. We instead found
that the disks containing the source code were but one type of
conduit for the ideas contained on it. In Rev. Rul. 80-327,
supra, plates to print books were purchased with the copyright
rights to reproduce and sell copies of the books. The physical
plates containing the creative work product were the subject
property (while the copyright rights were analyzed separately).
In this case, the subject property is the source code.
Sprint paid a fixed amount for the right to one working copy of
that software. There was not simply one embodiment of the
software (as was the case in Comshare). Rather, the intellectual
property existed in more than one locale, and Sprint purchased
the right to use, or possess, a working copy of that intellectual
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