Hallmark Marketing Corporation was the exclusive wholesale distributor of Hallmark products in the US and had been granted a royalty-free licence to use the Hallmark trademark in the territory. Hallmark Marketing Corporation was characterised as a routine distributor and its income was determined using the TNMM method with Berry Ratio as the PLI. The New York Division of Taxation disagreed with the use of the Berry Ratio because Hallmark Marketing Corporation also performed manufacturing activities, brand protection functions and owned non-rutine intangible assets. Judgement of the Tax Appeals Commission The Tax Appeals Commission ruled in favour of Hallmark Marketing Corporation. According to the Commission, Hallmark Marketing Corporation was a limited-risk distributor and did not provide any valuable services or non-routine intangibles ...