John Carmack is a computer genius and, while unemployed, invents a switching device for high$-$speed networks. He patents the device but does not reduce it to practice. Mr$.$ Carmack has a zero tax basis for the patent. In consideration of $$755,000$ plus a $$1\mathrm{.}50$ royalty per device sold, John assigns the patent to a computer manufacturing company. He assigns all substantial rights in the patent. Which of the following is correct?

a$.$

John automatically has long$-$term capital gain from the lump$-$sum payment, but not from the royalty payments.

b$.$

John automatically has long$-$term capital gain from the royalty payments but not from the lump$-$sum payment.

c$.$

John automatically has long$-$term capital gain from both the lump$-$sum payment and the royalty payments.

d$.$

John does not have automatic long$-$term capital gain from either the lump$-$sum payment or the royalty payments.