Planned Parenthood Federation of America, Inc. - Page 20




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          In the instant case, that is accomplished through the promotional           
          efforts of the list manager.  Accordingly, we conclude that the             
          list manager's activities in distributing data cards and other              
          forms of advertising directed to list brokers and potential                 
          mailers on petitioner's behalf are royalty-related activities.              
               Additionally, to protect the value of its mailing list, a              
          list owner will not allow the individuals and entities whose                
          names appear on the list to receive mail that the list owner                
          considers objectionable.  Accordingly, the list owner must engage           
          in activities to ensure that the list is rented only to                     
          appropriate mailers.  Consequently, we conclude that the list               
          manager's activities in forwarding the list orders to CMS for               
          approval are royalty-related activities.                                    
               To exploit its intangible and convey it to the user, the               
          list owner must also render it in tangible form.  In the list               
          rental context, that is accomplished by producing a copy of the             
          list for the mailer.  Consequently, we conclude that, the list              
          manager's activities in forwarding the order to Triplex for                 
          fulfillment and obtaining from Triplex a copy of the rental list            
          are royalty-related activities.                                             
               Finally, the owner of the intangible is entitled to be paid            
          for its use.  Accordingly, we conclude that the list manager's              
          activities in billing the mailer, paying Triplex, and remitting             
          payment to CMS are royalty-related activities.  On the basis of             





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