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Date
Rule
801.21
Staff
Michael Verne
Response/Comments
Agree.

Question

From:(redacted)

Sent:Wednesday, January 24, 2007 10:55 AM

To:Verne, B. Michael

Cc:(redacted)

Subject:FW: HSR

Mike

CompanyA is selling its right to an existing royalty stream generated by intellectualproperty which it owns (and which will not be transferred as a part of thetransaction). I understand that a royalty stream is treated like a cashequivalent under 801.21 and this has been the subject of a few informal interpretations.I assume that it doesn't change the non-reportability conclusion if the buyeris also given rights to direct of the enforcement of the underlying IP (theright to pursue infringers etc) and the right to cause the owner of the patentto enforce the agreement to pay royalties? Again, no patents or other IP isbeing transferred.

About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

Learn more about Informal Interpretations.

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