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registered in DHLI/MNV’s names without reference to DHL. To a
potential buyer, imperfections in DHL’s trademark ownership
(e.g., the foreign registrations) present potential legal
problems and possible controversy, delay, and litigation expense.
There is no question that these circumstances would have a
profound and substantial effect on value.
We also recognize that the international portion of the DHL
network was more successful than the U.S. portion, and, on the
basis of the financial data presented and other indications in
the record, we would conclude that about two-thirds of the value
of the trademark was sourced in its value outside the United
States. With a $150 million worldwide value, we find that $100
million was attributable to the portion of the network outside
the United States.
Here again, the parties have failed to provide guidance with
respect to the effect of DHL’s ownership imperfections on the
value of the trademark. The parties argued that DHL either did
or did not own the worldwide rights to the trademark. The
parties’ reasons for their positions caused our holding that DHL
owned the worldwide rights, but that the ownership was, in some
ways, imperfect. The all-or-nothing approach of the parties does
not adequately address any discount that may be appropriate to
account for the ownership defects. An imperfect title or cloud
on ownership would result in a marketability discount.
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