< Back to H.R. 2584 (111th Congress, 2009–2010)

Text of To amend title 35, United States Code, to limit the patentability of tax planning methods.

This bill was introduced on May 21, 2009, in a previous session of Congress, but was not enacted. The text of the bill below is as of May 21, 2009 (Introduced).

Source: GPO

I

111th CONGRESS

1st Session

H. R. 2584

IN THE HOUSE OF REPRESENTATIVES

May 21, 2009

(for himself, Mr. Goodlatte, Mr. Jones, Mr. Spratt, and Mr. Sherman) introduced the following bill; which was referred to the Committee on the Judiciary

A BILL

To amend title 35, United States Code, to limit the patentability of tax planning methods.

1.

Tax planning methods not patentable

(a)

In General

Section 101 of title 35 (35 U.S.C. 101) is amended—

(1)

by striking Whoever and inserting (a) Patentable Inventions.—Whoever; and

(2)

by adding at the end the following:

(b)

Tax Planning Methods

(1)

Unpatentable subject matter

A patent may not be obtained for a tax planning method.

(2)

Definitions

For purposes of paragraph (1)—

(A)

the term tax planning method means a plan, strategy, technique, or scheme that is designed to reduce, minimize, or defer, or has, when implemented, the effect of reducing, minimizing, or deferring, a taxpayer’s tax liability, but does not include the use of tax preparation software or other tools used solely to perform or model mathematical calculations or prepare tax or information returns;

(B)

the term taxpayer means an individual, entity, or other person (as defined in section 7701 of the Internal Revenue Code of 1986) that is subject to taxation directly, is required to prepare a tax return or information statement to enable one or more other persons to determine their tax liability, or is otherwise subject to a tax law;

(C)

the terms tax, tax laws, tax liability, and taxation refer to any Federal, State, county, city, municipality, or other governmental levy, assessment, or imposition, whether measured by income, value, or otherwise; and

(D)

the term State means each of the several States, the District of Columbia, and any commonwealth, territory, or possession of the United States.

.

(b)

Applicability

The amendments made by this section—

(1)

shall take effect on the date of the enactment of this Act;

(2)

shall apply to any application for patent or application for a reissue patent that is—

(A)

filed on or after the date of the enactment of this Act; or

(B)

filed before that date if a patent or reissue patent has not been issued pursuant to the application as of that date; and

(3)

shall not be construed as validating any patent issued before the date of the enactment of this Act for an invention described in section 101(b) of title 35, United States Code, as amended by this section.

(c)

Effective Date

The amendment made by subsection (a) shall take effect on the date of the enactment of this Act and shall apply to any action for patent infringement that is filed on or after that date.