Suzy's Zoo - Page 4




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          two nonshareholder employees.  Ms. Spafford is petitioner’s                 
          principal artist; she has personally drawn and painted most of              
          petitioner’s original cartoon characters and most of the scenes             
          in which the characters appear.  The other two employees also               
          draw original cartoon characters and scenes; their drawings are             
          reviewed, modified (as necessary), and approved by Ms. Spafford.            
          Ms. Spafford and the two employees together draw between 300 and            
          400 cartoon character/scenes a year, and each character/scene is            
          numbered and licensed.                                                      
               Petitioner offers for sale at its headquarters all currently           
          available merchandise that bears an image of at least one of its            
          cartoon characters.  Petitioner does not sell items that do not             
          bear an image of at least one of its cartoon characters, and it             
          does not sell its original cartoon drawings.  Petitioner’s                  
          primary customers are card and gift shops and licensing partners,           
          and most of its nonlicensing partner sales are by or through                
          independent sales representatives, each of whom has a specified             
          sales territory and each of whom earns a straight sales                     
          commission.  Sales representatives order petitioner’s products              
          directly from it, and they place the products in card and gift              
          shops and the like.  Petitioner ships most of its inventory from            
          its headquarters, where petitioner’s employees generally package            










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Last modified: May 25, 2011