Byron Bright, an inventor, sells the patent rights on his latest invention to Wilson Corporation. Wilson intends to manufacture and sell Byrons invention. Byron will receive $50 per unit Wilson sells plus a lump-sum payment of $500,000. What is the tax treatment of each type of payment for Byron? If Wilson Corporation is limited to producing and selling Byrons invention in the western section of the United States, what is the tax treatment of each type of payment?