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important or valuable, the value of the infrastructure and
operating know-how are more valuable.21
B. Royalties
DHLI did not pay DHL royalties before the 1990-92
transaction. After the transaction and transfer of the
trademark, no royalty was to be charged to DHL for the first 15
years and a .75 percent royalty was to be paid beginning 2007.
One of respondent’s experts, Keith Reams (Reams), applied a 1-
percent royalty to the DHLI and MNV courier revenues to reach the
following royalty revenue amounts:
1982 $2,399,000
1983 3,020,000
1984 3,940,000
1985 4,421,000
1986 4,938,000
1987 6,196,000
1988 8,195,000
1989 10,003,000
1990 11,920,000
1991 15,607,000
1992 12,490,000
Respondent’s other expert applied a .75-percent royalty to the
combined revenue of DHLI and MNV reduced by revenue from another
entity, and, for the years 1991 and 1992, the imbalance fees from
DHL to reach the following royalty revenue amounts:
21 Because of the complex interaction of these concepts,
the relationship cannot be completely proportionate. We only
emphasize that there is some correlation between them.
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