The Dolce & Gabbana case deals with two intercompany agreements regarding marketing services, a service agreement and a supply agreement. Essentially, the case focused mainly on whether a U.S. distribution affiliate should receive any profits from its promotion and marketing activities in order to distribute and sell products bearing the well-known trademark throughout the world or whether profits should come to reside in the parent company. The retribution is calculated using the costs analytically attributable to the provision of the agreed-upon services, plus a mark-up, i.e., a mark-up calculated in a variable percentage based on the amount of the cost. In addition to that, parent and subsidiary entered into a supply agreement, whereby the U.S. subsidiary acts as distributor for that market in mono-brand shops to increase brand awareness. The service contribution was recognised in relation to the costs exceeding a percentage of the turnover realised through the mono-brand sales outlets.