Opinion ID: 1475251
Heading Depth: 1
Heading Rank: 6

Heading: Federal Income Taxes.

Text: The master found that Pittsburgh was entitled to a deduction for federal income taxes in the amount of $216,540.76. The Second Circuit in Stromberg Motor Devices Co. v. Zenith-Detroit Corporation (C.C.A.) 73 F.(2d) 62, and this Circuit in Macbeth-Evans Glass Co. v. L. E. Smith Glass Co. (C.C.A.) 23 F.(2d) 459, have held that federal income taxes actually paid may be deducted as a proper item of expense in a patent accounting. We do not think that L. P. Larson, Jr., Co. v. Wm. Wrigley, Jr., Co., 277 U.S. 97, 48 S.Ct. 449, 72 L.Ed. 800, relied upon by the plaintiff as authority for the denial of the right to deduct taxes is determinative, for whereas the defendant in that case was found guilty of a conscious and deliberate infringement, the defendants in the instant case infringed in good faith. We conclude that the District Court did not err in approving the master's allowance for federal income taxes paid by Pittsburgh, and the error assigned on this issue is not sustained.