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Winget Kickernick Co. v. La Mode Garment Co., 42 F.2d 513, 514
(N.D. Ill. 1930).
Having held that the Hyatt trade names and marks do have
value in the context of the international operations, we now turn
to evaluating the amount of arm’s-length consideration that
should have passed from HIC to Hyatt Domestic for the use of the
Hyatt names and marks. The parties placed heavy reliance on
their respective expert witnesses in arguing what is the correct
amount of arm’s-length consideration for use of the names and
marks. In reaching our holding:
We weigh expert testimony in light of the expert’s
qualifications as well as all the other credible
evidence in the record. Estate of Newhouse v.
Commissioner, 94 T.C. 193, 217 (1990). We are not
bound by the opinion of any expert witness, and we will
accept or reject that expert testimony when, in our
best judgment, based on the record, it is appropriate
to do so. Estate of Newhouse v. Commissioner, supra;
Chiu v. Commissioner, 84 T.C. 722, 734 (1985). While
we may choose to accept the opinion of one expert in
its entirety, Buffalo Tool & Die Mfg. Co. v.
Commissioner, 74 T.C. 441, 452 (1980), we may also be
selective in the use of any portion of that opinion.
Parker v. Commissioner, 86 T.C. 547, 562 (1986).
Sundstrand Corp. v. Commissioner, 96 T.C. at 359. A review of
the royalty, marketing, and reservations charges of U.S.-based
hotel franchises by respondent’s expert (BVS) resulted in
combined average rates ranging from 3 to 7 percent of gross room
revenue. Generally, as a percentage of gross room revenues,
royalties ranged from 4 to 5 percent, typical marketing fees
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