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petitioner's female supporters or, for example,5 the rental of a
list consisting of only the names of petitioner's male supporters
between the ages of 20 and 25 who reside in a particular ZIP
code. The culling out or special selection of certain names is
ancillary to the maintenance and exploitation of the list. Cf.
Glen O'Brien Movable Partition Co. v. Commissioner, 70 T.C. 492,
502 (1978) ("Where services are performed subsidiary and
ancillary to the transfer of patent rights and proprietary know-
how, they take on the nature of the patent rights and know-how as
'property'."); Ruge v. Commissioner, 26 T.C. 138, 143 (1956)
("The consulting services * * * were ancillary and subsidiary to
the assignments of the inventions"). In other words, payment for
the one-time right to mail to names on a list, no matter how
specialized that list is, is a royalty.
As to the shipping, in order to exploit the intangible, the
owner ordinarily will need to send the information contained in
the intangible to the user. Consequently, we conclude that
Triplex's activities in shipping the list to the mailer are
royalty-related activities. In sum, we conclude that, in the
course of the list rental transaction, all of the activities in
which Triplex engages are royalty-related activities.
5 Petitioner does not offer age as a special selection.
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