Stephen D. Podd - Page 16

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          October 16, 1986, application.  Although Amoco made several                 
          suggestions and requests during the developmental stages of the             
          liner system, Amoco did not assert any ownership rights in the              
          invention.  On January 24, 1989, and December 5, 1989, United States        
          Patent numbers 4,799,607 and 4,884,722, respectively, (the Amoco            
          patents) were issued to Mr. Podd by the U.S. Patent and Trademark           
          Office for the invention.                                                   
               Subsequently, Powertex filed applications in several countries         
          for foreign counterpart patents concerning the Amoco liner, listing         
          Mr. Podd as the inventor.4  Several foreign counterpart patents were        
          subsequently published as a result of the applications.                     
               Powertex paid the legal expenses and filing fees for both the          
          U.S. and foreign counterpart patents concerning the Amoco liner.  On        
          its corporate tax returns, the expenses and fees were either claimed        
          as deductions or capitalized.                                               
               Powertex sued Insta-Bulk for infringement of the Amoco                 
          patents.5  On December 22, 1994, in settlement of the litigation, an        
          agreement was executed which provided that Powertex would grant             
          Insta-Bulk a "limited, exclusive, non-transferrable license" to make        


          4    Petitioners contend that applications for foreign                      
          counterpart patents were filed by Powertex because at that time             
          Canada was not a signatory to the Patent Cooperation Treaty, and,           
          therefore, Mr. Podd could not file for such patents, but                    
          Powertex, a United States corporation, could.                               
          5    It is not clear from the record why Powertex, rather than              
          Mr. Podd, brought suit against Insta-Bulk, nor is the period in             
          time when this suit took place disclosed in the record.                     




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