DHL Corporation and Subsidiaries - Page 36

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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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Last modified: May 25, 2011