Question
From:(redacted)
Sent:Monday, June 19, 2006 11:19 AM
To:Verne, B. Michael
Subject:802.50 Foreign Asset Exemption Question
Mike,thanks for returning my call this morning and I'm sorry I missed you.
The dispositive question for one of my clients is thefollowing: Company A is a U.S. company that has patent rights and know-how for adrug that it is will exclusively license to B for use in Europe. Theexclusive patent rights will be European patent rights. The know-how licensedto B will be licensed for use with the European patent rights is protected onlyby U.S. trade secret law. B license is limited to Europe.
Since the source of revenue for the patent rights andknow-how are exclusively European (B is prohibited from selling the drug to
U.S. consumers), can we consider the exclusive license ofthe European patent rights and U.S.-protected know how "assets locatedoutside the U.S." for purposes of 802.50?