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'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.
List Brokers
The activities of the list brokers include: (1) Searching
advertisements and databases for appropriate list offerings for
the mailer to rent; (2) coordinating the rental transaction on
behalf of the mailer; (3) collecting payment from the mailer to
remit to the list manager or list owner; and (4) analyzing the
results of the mailing to determine whether it was successful.
We conclude that the list brokers' activities are not royalty-
related activities. Rather, the list brokers' activities are
provided solely to the mailers and solely for the mailers'
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