0701017 Informal Interpretation

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.