Court of Appeals for the Sixth Circuit February 25, 1980, 77-1635, 77-1636 (David R. Blake and Betty H. Blake, and Cross-Appellants v. Commissioner of Internal Revenue, and Cross-Appellee)

BAILEY BROWN, Circuit Judge.

The principal issue raised by this appeal is whether the royalties paid by a licensee to the taxpayer-appellee as holder of a patent were long term capital gain to taxpayer under § 1235 of the Internal Revenue Code of 1954 or were ordinary income.