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CONTENTS
Findings of Fact . . . . . . . . . . . . . . . . . . . . . . 4
I. Background . . . . . . . . . . . . . . . . . . . . . 4
II. Stock Ownership and Control . . . . . . . . . . . . . 13
III. Operating Agreements Between
DHL and DHLI and Related Entities . . . . . . . . . . 21
IV. Development and Use of the DHL
Trademark and Logo . . . . . . . . . . . . . . . . . 26
V. Financial Condition of DHL . . . . . . . . . . . . . 33
VI. Negotiations with UPS . . . . . . . . . . . . . . . . 37
VII. 1990-92 Transaction With Foreign
Investors . . . . . . . . . . . . . . . . . . . . . . 37
VIII. The Imbalance and Transfer Fees . . . . . . . . . . . 61
IX. Technology and Systems . . . . . . . . . . . . . . 66
X. Respondent’s Determination . . . . . . . . . . . . . 68
Opinion . . . . . . . . . . . . . . . . . . . . . . . . . . 71
I. Background . . . . . . . . . . . . . . . . . . . . . 71
II. Were Respondent’s Determinations
in the Notices of Deficiency
Arbitrary, Capricious, or
Unreasonable? . . . . . . . . . . . . . . . . . . . . 73
III. The Question of Control . . . . . . . . . . . . . . . 81
A. Was There Common Control
After December 7, 1990? . . . . . . . . . . . . . 82
B. Effect of the Trademark Transfer
After the Foreign Investors Attained
Their Collective Shareholding
Majority of the New DHLI/MNV
Entity . . . . . . . . . . . . . . . . . . . . . 85
IV. Ownership and Value of the DHL
Trademark . . . . . . . . . . . . . . . . . . . . . . 87
A. Ownership . . . . . . . . . . . . . . . . . . . . 87
B. Value of the DHL Trademark . . . . . . . . . . . 99
1. Effect of Section 482 Regulations
on Allocation of Value. . . . . . . . . . . . 125
2. Respondent’s Alternative
Argument--The Alstores
Doctrine . . . . . . . . . . . . . . . . . . 131
V. Allocation of DHLI Income to DHL
From Imputed Royalties, Imbalance,
Transfer, and Network Fees for the
Period 1974 Through 1992 . . . . . . . . . . . . . . 133
A. Background . . . . . . . . . . . . . . . . . . . 133
B. Royalties . . . . . . . . . . . . . . . . . . . . 135
C. Imbalance and Transfer Fees . . . . . . . . . . . 141
D. Network Fee . . . . . . . . . . . . . . . . . . . 155
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Last modified: May 25, 2011