- 123 - 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.Page: Previous 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 Next
Last modified: May 25, 2011