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A tax patent is a patent that discloses and claims a system or method for reducing or deferring taxes. Tax patents have been granted predominantly in the United States but can be granted in other countries as well.^[1] They are considered to be a form of business method patent. They are also called "tax planning patents", "tax strategy patents",^[2] and "tax shelter patents".^[3] In September 2011, President Barack Obama signed the Leahy-Smith America Invents Act passed by the U.S. Congress that effectively prohibits the granting of tax patents in general.

History

The earliest patent that the United States Patent and Trademark Office (USPTO) considers to be a tax patent is Van Remortel et al., U.S. patent 5,136,502 "System for funding, analyzing and managing health care liabilities". This patent issued in 1992 and covers, among other things, a computerized administration system for tax advantaged funding of health care programs for retirees. The United States Congress has never passed a law explicitly allowing tax patents^[4] but in 1998, the U.S. Court of Appeals for the Federal Circuit ruled in State Street Bank v. Signature Financial Group that business methods (and hence methods for reducing taxes) have been patentable at least since 1952 when Congress amended the requirements for patentability in the Patent Act of 1952.

USPTO classification

The USPTO has created a patent class for tax patents. The classification is 705/36T.

The USPTO has placed 209 issued US patents^[5] and 188 published patent applications^[6] in this classification. The USPTO has not, however, published a formal definition of the class.^[7]

About 10 new tax patent applications have been filed each year in recent years, and about five new patents have been issued each year. Some applications and issued patents appear to be mischaracterized since they do not deal with taxes.^[8]

Regulation

In 2005, The U.S. Internal Revenue Service (IRS) determined that none of the then pending U.S. tax patents contained abusive tax avoidance transactions.^[9] Nonetheless, in September 2007, the IRS proposed a set of rules that would require tax filers to disclose whether they have paid a license fee to the holder of a tax patent.^[10] Similar to the ban passed by the U.S. House of Representatives, this regulation includes an exemption for patents on software for calculating taxes.

There is some concern in the financial community that complying with these regulations will increase the chances of a tax patent licensee being audited by the IRS and that this, in turn, will decrease the value of tax patents in general.^[11] These regulations have, however, been strongly supported by the Section of Taxation of the American Bar Association.^[12]

Examples

Examples of tax patents include:^[2]

U.S. patent 6,567,790 Funding of a GRAT with nonqualified stock options.
U.S. patent 6,292,788 Tax-deferred real estate transaction.
https://www.investopedia.com/how-vanguard-patented-a-system-to-avoid-taxes-in-mutual-funds-4686985

Enforcement

In 2006, the Wealth Transfer Group sued former Aetna CEO John Rowe for infringement of a tax patent.^[4] The patent was U.S. patent 6,567,790, entitled "Establishing and managing grantor retained annuity trusts funded by nonqualified stock options".^[9] (i.e. SOGRAT) This case has been settled for undisclosed terms.^[13]

New law

On September 8, 2011, the United States Senate passed the Leahy-Smith America Invents Act, which had already been passed by the House of Representatives. The Act is described as "a comprehensive patent reform bill that includes language to stop the U.S Patent and Trademark Office from issuing patents for tax strategy methods."^[14]^[15] The Act was signed into law by President Barack Obama on September 16, 2011.^[16]^[17]

Subsection (a) of section 14 of the Act provides (in part):

For purposes of evaluating an invention under section 102 or 103 of title 35, United States Code, any strategy for reducing, avoiding, or deferring tax liability, whether known or unknown at the time of the invention or application for patent, shall be deemed insufficient to differentiate a claimed invention from the prior art.^[18]

Subsection (b) of section 14 provides (in part):

For purposes of this section, the term "tax liability" refers to any liability for a tax under any Federal, State, or local law, or the law of any foreign jurisdiction, including any statute, rule, regulation, or ordinance that levies, imposes, or assesses such tax liability.^[19]

Subsection (c) of section 14 provides (in part):

This section does not apply to that part of an invention that [...] is a method, apparatus, technology, computer program product, or system, that is used solely for preparing a tax or information return or other tax filing, including one that records, transmits, transfers, or organizes data related to such filing...^[20]

Subsection (e) of section 14 of the Act provides that the tax patent prohibition takes effect on the date of the enactment (September 16, 2011) and that it will apply "to any patent application that is pending on, or filed on or after, that date, and to any patent that is issued on or after that date."^[21]

References

^ Australian patent AU0766112B2: Life insurance method, system and product
^ ^a ^b Tax Strategy Patents, Patently O blog, November 13, 2007
^ Summary of Levin-Coleman-Obama Stop Tax Haven Abuse Act, U.S. Senator Carl Levin press release, February 17, 2007.
^ ^a ^b Floyd Norris, Patent law is getting tax crazy, International Herald Tribune, October 19, 2006.
^ List of issued US patents in class 705/36T
^ Published US patent applications in class 705/36T
^ USPTO list of subclasses for class 705, DATA PROCESSING: FINANCIAL, BUSINESS PRACTICE, MANAGEMENT, OR COST/PRICE DETERMINATION
^ Stamper, Dustin "Tax Strategy Patents: A Problem Without Solutions?", Tax Notes
^ ^a ^b Nowotarski, Mark, "Tax Strategies?", Insurance IP Bulletin, October 15, 2006
^ IRS Patent Transactions Rule Changes, Federal Register / Vol. 72, No. 186 / Wednesday, September 26, 2007 / Proposed Rules 54615
^ Lambert, Lisa "Trend of 'owning' tax avoidance methods grows in U.S", Reuters November 15, 2007
^ Drapkin, Dennis, "Comments Concerning a New Category of Reportable Transactions Covering Patented Tax Strategies", February 21, 2007 Archived July 24, 2011, at the Wayback Machine
^ Herman, Tom, "Patents on Tax-Related Ideas Stir Worry", Wall Street Journal, March 14, 2007
^ "Statement from AICPA President and CEO Barry Melancon Praising Final Congressional Action on Bill to Stop Tax Strategy Patents," Sept. 8, 2011, American Institute of Certified Public Accountants, at [1].
^ See generally: Bill Summary and Status, Library of Congress, Leahy-Smith America Invents Act, H.R. 1249; passed U.S. House of Representatives on June 23, 2011; passed U.S. Senate on Sept. 8, 2011, at [2] Archived 2014-10-15 at the Wayback Machine.
^ Darlene Superville, "Obama signs Obama signs 1st major patent law change since 1952," Sept. 16, 2011, Associated Press, at [3].
^ Leahy-Smith America Invents Act, Pub. L. No. 112-29 (Sept. 16, 2011).
^ Leahy-Smith America Invents Act, Pub. L. No. 112-29, sec. 14(a).
^ Leahy-Smith America Invents Act, Pub. L. No. 112-29, sec. 14(b).
^ Leahy-Smith America Invents Act, Pub. L. No. 112–29, sec. 14(c).
^ Leahy-Smith America Invents Act, Pub. L. No. 112–29, sec. 14(e).

[1] Australian patent AU0766112B2: Life insurance method, system and product

[patentlyo.com-2] Tax Strategy Patents, Patently O blog, November 13, 2007

[3] Summary of Levin-Coleman-Obama Stop Tax Haven Abuse Act, U.S. Senator Carl Levin press release, February 17, 2007.

[IHT-4] Floyd Norris, Patent law is getting tax crazy, International Herald Tribune, October 19, 2006.

[5] List of issued US patents in class 705/36T

[6] Published US patent applications in class 705/36T

[7] USPTO list of subclasses for class 705, DATA PROCESSING: FINANCIAL, BUSINESS PRACTICE, MANAGEMENT, OR COST/PRICE DETERMINATION

[8] Stamper, Dustin "Tax Strategy Patents: A Problem Without Solutions?", Tax Notes

[bakosenterprises.com-9] Nowotarski, Mark, "Tax Strategies?", Insurance IP Bulletin, October 15, 2006

[10] IRS Patent Transactions Rule Changes, Federal Register / Vol. 72, No. 186 / Wednesday, September 26, 2007 / Proposed Rules 54615

[11] Lambert, Lisa "Trend of 'owning' tax avoidance methods grows in U.S", Reuters November 15, 2007

[12] Drapkin, Dennis, "Comments Concerning a New Category of Reportable Transactions Covering Patented Tax Strategies", February 21, 2007 Archived July 24, 2011, at the Wayback Machine

[13] Herman, Tom, "Patents on Tax-Related Ideas Stir Worry", Wall Street Journal, March 14, 2007

[14] "Statement from AICPA President and CEO Barry Melancon Praising Final Congressional Action on Bill to Stop Tax Strategy Patents," Sept. 8, 2011, American Institute of Certified Public Accountants, at [1].

[15] See generally: Bill Summary and Status, Library of Congress, Leahy-Smith America Invents Act, H.R. 1249; passed U.S. House of Representatives on June 23, 2011; passed U.S. Senate on Sept. 8, 2011, at [2] Archived 2014-10-15 at the Wayback Machine.

[16] Darlene Superville, "Obama signs Obama signs 1st major patent law change since 1952," Sept. 16, 2011, Associated Press, at [3].

[17] Leahy-Smith America Invents Act, Pub. L. No. 112-29 (Sept. 16, 2011).

[18] Leahy-Smith America Invents Act, Pub. L. No. 112-29, sec. 14(a).

[19] Leahy-Smith America Invents Act, Pub. L. No. 112-29, sec. 14(b).

[20] Leahy-Smith America Invents Act, Pub. L. No. 112–29, sec. 14(c).

[21] Leahy-Smith America Invents Act, Pub. L. No. 112–29, sec. 14(e).

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@@ Line 1: / Line 1: @@
-[[Image:US patent 5136502.JPG|thumb|right|Earliest US patent classified as a tax patent by the USPTO, August 4, 1992 <ref> This is the earliest patent currently classified by the USPTO in 705/36T </ref>]]
+<!-- Deleted image removed: [[Image:US patent 5136502.JPG|thumb|right|Earliest US patent classified as a tax patent by the USPTO, August 4, 1992 <ref>This is the earliest patent currently classified by the USPTO in 705/36T</ref>]] -->
 {{Patent law}}
-A '''tax patent''' is a [[patent]] that discloses and [[claim (patent)|claim]]s a system or method for reducing or deferring [[tax]]es. Tax patents have been granted predominantly in the [[United States]] but can be granted in other countries as well.<ref>[http://www.delphion.com/details?pn=AU00766112B2&s_FAMILY=1 Australian patent  AU0766112B2: Life insurance method, system and product]</ref> They are considered to be a form of [[business method patent]]. They are also called "[[tax avoidance|tax planning]] patents", "tax strategy patents"<ref name="patentlyo.com">[http://www.patentlyo.com/patent/2007/11/tax-strategy-pa.html#comments Tax Strategy Patents, Patently O blog, November 13, 2007]</ref>, and "tax shelter patents".<ref>[http://www.senate.gov/~levin/newsroom/release.cfm?id=269516 Summary of Levin-Coleman-Obama Stop Tax Haven Abuse Act, U.S. Senator Carl Levin press release, February 17, 2007.]</ref> In September 2011, President Barack Obama signed legislation passed by the U.S. Congress that effectively prohibits the granting of tax patents in general.
+A '''tax patent''' is a [[patent]] that discloses and [[claim (patent)|claim]]s a system or method for reducing or deferring [[tax]]es. Tax patents have been granted predominantly in the [[United States]] but can be granted in other countries as well.<ref>[http://www.delphion.com/details?pn=AU00766112B2&s_FAMILY=1 Australian patent  AU0766112B2: Life insurance method, system and product]</ref> They are considered to be a form of [[business method patent]]. They are also called "[[tax avoidance|tax planning]] patents", "tax strategy patents",<ref name="patentlyo.com">[http://www.patentlyo.com/patent/2007/11/tax-strategy-pa.html#comments Tax Strategy Patents, Patently O blog, November 13, 2007]</ref> and "tax shelter patents".<ref>[https://www.senate.gov/~levin/newsroom/release.cfm?id=269516 Summary of Levin-Coleman-Obama Stop Tax Haven Abuse Act, U.S. Senator Carl Levin press release, February 17, 2007.]</ref> In September 2011, [[President Barack Obama]] signed the [[Leahy-Smith America Invents Act]] passed by the [[U.S. Congress]] that effectively prohibits the granting of tax patents in general.
-==Jurisdictions==
+==History==
-=== United States ===
-====History====
-The earliest patent that the [[United States Patent and Trademark Office]] (USPTO) considers to be a tax patent is Van Remortel et al., {{US patent|5136502}} "System for funding, analyzing and managing health care liabilities".  This patent issued in 1992 and covers, among other things, a computerized administration system for tax advantaged funding of [[Health_insurance#Private:_employer-sponsored|health care programs]] for retirees. The [[United States Congress]] has never passed a law ''explicitly'' allowing tax patents <ref name="IHT"> Floyd Norris, [http://www.iht.com/articles/2006/10/19/business/norris20.php ''Patent law is getting tax crazy''], [[International Herald Tribune]], October 19, 2006. </ref> but in 1998, the [[U.S. Court of Appeals for the Federal Circuit]] ruled in [[State Street Bank v. Signature Financial Group]] that business methods (and hence methods for reducing taxes) have been [[patentable subject matter|patentable]] at least since 1952 when Congress amended the requirements for patentability in the [[Patent Act of 1952]].
+The earliest patent that the [[United States Patent and Trademark Office]] (USPTO) considers to be a tax patent is Van Remortel et al., {{US patent|5136502}} "System for funding, analyzing and managing health care liabilities".  This patent issued in 1992 and covers, among other things, a computerized administration system for tax advantaged funding of [[Health insurance#Private: employer-sponsored|health care programs]] for retirees. The [[United States Congress]] has never passed a law ''explicitly'' allowing tax patents<ref name="IHT">Floyd Norris, [http://www.iht.com/articles/2006/10/19/business/norris20.php ''Patent law is getting tax crazy''], [[International Herald Tribune]], October 19, 2006.</ref> but in 1998, the [[U.S. Court of Appeals for the Federal Circuit]] ruled in [[State Street Bank v. Signature Financial Group]] that business methods (and hence methods for reducing taxes) have been [[patentable subject matter|patentable]] at least since 1952 when Congress amended the requirements for patentability in the [[Patent Act of 1952]].
-====USPTO classification====
-The USPTO has created a [[Patent classification|patent class]] for tax patents. The classification is '''705/36T'''.
+==USPTO classification==
-The USPTO has placed 60 issued US patents <ref>[http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=0&p=1&f=S&l=50&Query=ccl%2F705%2F36T&d=PTXT List of issued US patents in class 705/36T]</ref> and 100 published patent applications <ref>[http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.html&r=0&p=1&f=S&l=50&Query=ccl%2F705%2F36T&d=PG01 Published US patent applications in class 705/36T]</ref> in this classification. The USPTO has not, however, published a formal definition of the class.<ref>[http://www.uspto.gov/go/classification/uspc705/sched705.htm USPTO list of subclasses for class 705, DATA PROCESSING: FINANCIAL, BUSINESS PRACTICE, MANAGEMENT, OR COST/PRICE DETERMINATION]</ref>
+The USPTO has created a [[Patent classification|patent class]] for tax patents. The classification is '''705/36T'''.
-About 10 new tax patent applications have been filed each year in recent years, and about five new patents have been issued each year. Some applications and issued patents appear to be mischaracterized since they do not deal with taxes. <ref>[http://www.taxanalysts.com/www/website.nsf/Web/TaxStrategyPatents?OpenDocument Stamper, Dustin "Tax Strategy Patents: A Problem Without Solutions?", [[Tax Notes]]]</ref>
+The USPTO has placed 209 issued US patents<ref>[http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=0&p=1&f=S&l=50&Query=ccl%2F705%2F36T&d=PTXT List of issued US patents in class 705/36T]</ref> and 188 published patent applications<ref>[http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.html&r=0&p=1&f=S&l=50&Query=ccl%2F705%2F36T&d=PG01 Published US patent applications in class 705/36T]</ref> in this classification. The USPTO has not, however, published a formal definition of the class.<ref>[http://www.uspto.gov/go/classification/uspc705/sched705.htm USPTO list of subclasses for class 705, DATA PROCESSING: FINANCIAL, BUSINESS PRACTICE, MANAGEMENT, OR COST/PRICE DETERMINATION]</ref>
-====Proposed legislation====
-Tax patents are controversial. According to some, "tax patents amount to "government-issued barbed wire" to keep some taxpayers from getting equal treatment under the tax code." <ref name="IHT"/>  The proposed [[Patent Reform Act of 2007]], passed by the [[United States House of Representatives]], but not enacted into law, would have provided for an explicit ban on tax patents, but would include an exemption for software that calculates taxes. The proposed [[Stop Tax Haven Abuse Act]] would provide for a similar ban. This bill was introduced in the [[United States Senate]] by several Senators including then Senator [[Barack Obama]].<ref>[http://levin.senate.gov/newsroom/release.cfm?id=269479 Levin, Coleman, Obama Introduce Stop Tax Haven Abuse Act, press release of US Senator [[Carl Levin]], February 17, 2007]</ref>
+About 10 new tax patent applications have been filed each year in recent years, and about five new patents have been issued each year. Some applications and issued patents appear to be mischaracterized since they do not deal with taxes.<ref>[http://www.taxanalysts.com/www/website.nsf/Web/TaxStrategyPatents?OpenDocument Stamper, Dustin "Tax Strategy Patents: A Problem Without Solutions?"], [[Tax Notes]]</ref>
-These proposals have been strongly supported by [[American Institute of Certified Public Accountants]] (AICPA). The position of the AICPA is that tax patents: <ref>Jeffrey R. Hoops Chair, AICPA Tax Executive Committee, [http://tax.aicpa.org/Resources/Tax+Patents/AICPA+Urges+Congress+to+Address+Tax+Strategy+Patents.htm ''AICPA Urges Congress to Address Tax Strategy Patents''], February 28, 2007</ref>
+==Regulation==
-*"Limit the ability of taxpayers to utilize fully interpretations of tax law intended by Congress;"
-*"May cause some taxpayers to pay more tax than Congress intended and may cause other taxpayers to pay more tax than others similarly situated;"
-*"Complicate the provision of tax advice by professionals;"
-*"Hinder compliance by taxpayers;"
-*"Mislead taxpayers into believing that a patented strategy is valid under the tax law;" and
-*"Preclude tax professionals from challenging the validity of tax strategy patents."
+In 2005, The U.S. [[Internal Revenue Service]] (IRS) determined that none of the then pending U.S. tax patents contained [[Tax avoidance and tax evasion|abusive tax avoidance transactions]].<ref name="bakosenterprises.com">[http://www.bakosenterprises.com/IP/B-10152006/IPB-10152006.html Nowotarski, Mark, "Tax Strategies?", Insurance IP Bulletin, October 15, 2006]</ref>  Nonetheless, in September 2007, the IRS proposed a set of rules that would require tax filers to disclose whether they have paid a license fee to the holder of a tax patent.<ref>[http://www.regulations.gov/#!documentDetail;D=IRS-2007-0112-0001 IRS Patent Transactions Rule Changes, Federal Register / Vol. 72, No. 186 / Wednesday, September 26, 2007 / Proposed Rules 54615]</ref> Similar to the ban passed by the [[U.S. House of Representatives]], this regulation includes an exemption for patents on software for calculating taxes.
-Congressman [[Rick Boucher]] introduced a bill that would have exempted tax attorneys and tax payers from liability with respect to infringement of tax patents. This proposal currently has 40 cosponsors.<ref> [[Dennis Crouch]], [http://www.patentlyo.com/patent/2008/06/tax-patent-legi.html "''Tax Patent Legislation: Excusing Infringement of Patented Tax Planning Methods''"], Patently O blog, June 20, 2008</ref>
+There is some concern in the financial community that complying with these regulations will increase the chances of a tax patent licensee being audited by the IRS and that this, in turn, will decrease the value of tax patents in general.<ref>[https://www.reuters.com/article/domesticNews/idUSN1526035520071115?sp=true Lambert, Lisa "Trend of 'owning' tax avoidance methods grows in U.S"], [[Reuters]] November 15, 2007</ref>  These regulations have, however, been strongly supported by the Section of Taxation of the  [[American Bar Association]].<ref>[http://meetings.abanet.org/webupload/commupload/TX800000/relatedresources/CommentsonaNewCategoryofReportableTransactionsCoveringPatentedTaxStrategies.pdf Drapkin, Dennis, "Comments Concerning a New Category of Reportable Transactions Covering Patented Tax Strategies", February 21, 2007] {{Webarchive|url=https://web.archive.org/web/20110724213728/http://meetings.abanet.org/webupload/commupload/TX800000/relatedresources/CommentsonaNewCategoryofReportableTransactionsCoveringPatentedTaxStrategies.pdf |date=July 24, 2011 }}</ref>
-====Regulation====
+==Examples==
-In 2005, The U.S. [[Internal Revenue Service]] (IRS) determined that none of the then pending U.S. tax patents contained [[Tax avoidance and tax evasion|abusive tax avoidance transactions]].<ref name="bakosenterprises.com">[http://www.bakosenterprises.com/IP/B-10152006/IPB-10152006.html Nowotarski, Mark, "Tax Strategies?", Insurance IP Bulletin, October 15, 2006]</ref>  Nonetheless, in September 2007, the IRS proposed a set of rules that would require tax filers to disclose whether they have paid a license fee to the holder of a tax patent.<ref>[http://www.regulations.gov/fdmspublic/component/main?main=DocumentDetail&d=IRS-2007-0112-0001 IRS Patent Transactions Rule Changes, Federal Register / Vol. 72, No. 186 / Wednesday, September 26, 2007 / Proposed Rules 54615]</ref> Similar to the ban passed by the U.S. House of Representatives, this regulation includes an exemption for patents on software for calculating taxes.
-There is some concern in the financial community that complying with these regulations will increase the chances of a tax patent licensee being audited by the IRS and that this, in turn, will decrease the value of tax patents in general.<ref>[http://www.reuters.com/article/domesticNews/idUSN1526035520071115?sp=true Lambert, Lisa “Trend of "owning" tax avoidance methods grows in U.S”, [[Reuters]] November 15, 2007]</ref>  These regulations have, however, been strongly supported by the Section of Taxation of the  [[American Bar Association]]. <ref>[http://meetings.abanet.org/webupload/commupload/TX800000/relatedresources/CommentsonaNewCategoryofReportableTransactionsCoveringPatentedTaxStrategies.pdf Drapkin, Dennis, "Comments Concerning a New Category of Reportable Transactions Covering Patented Tax Strategies", February 21, 2007]</ref>
-====Examples====
 Examples of tax patents include:<ref name="patentlyo.com"/>
 *{{US patent|6567790}} Funding of a GRAT with nonqualified stock options.
 *{{US patent|6292788}} Tax-deferred real estate transaction.
+* https://www.investopedia.com/how-vanguard-patented-a-system-to-avoid-taxes-in-mutual-funds-4686985
-====Enforcement====
+==Enforcement==
-In 2006, the [[Wealth Transfer Group]] sued former [[Aetna]] CEO [[John W. Rowe]] for infringement of a tax patent.<ref name="IHT"/>  The patent was {{US patent|6567790}}, entitled "Establishing and managing grantor retained annuity trusts funded by nonqualified stock options".<ref name="bakosenterprises.com"/> (i.e. [[SOGRAT]]) This case has been settled for undisclosed terms.<ref>[http://online.wsj.com/article/SB117383751682136325.html Herman, Tom, "Patents on Tax-Related Ideas Stir Worry", ''[[Wall Street Journal]]'', March 14, 2007]</ref>
+In 2006, the [[Wealth Transfer Group]] sued former [[Aetna]] CEO [[John Rowe (Aetna)|John Rowe]] for infringement of a tax patent.<ref name="IHT"/>  The patent was {{US patent|6567790}}, entitled "Establishing and managing grantor retained annuity trusts funded by nonqualified stock options".<ref name="bakosenterprises.com"/> (i.e. [[SOGRAT]]) This case has been settled for undisclosed terms.<ref>[https://www.wsj.com/articles/SB117383751682136325 Herman, Tom, "Patents on Tax-Related Ideas Stir Worry"], ''[[Wall Street Journal]]'', March 14, 2007</ref>
-==New law on tax patents==
+==New law==
-On September 8, 2011, the United States Senate passed the ''Leahy-Smith America Invents Act'' which had already been passed by the House of Representatives. The Act is described as "a comprehensive patent reform bill that includes language to stop the U.S. Patent and Trademark Office from issuing patents for tax strategy methods."<ref>"Statement from AICPA President and CEO Barry Melancon Praising Final Congressional Action on Bill to Stop Tax Strategy Patents," Sept. 8, 2011, American Institute of Certified Public Accountants, at [http://www.aicpa.org/Press/PressReleases/2011/Pages/BarryMelanconPraisingFinalCongressionalActiononBilltoStopTaxStrategyPatents.aspx].</ref><ref>See generally: Bill Summary and Status, Library of Congress, ''Leahy-Smith America Invents Act'', H.R. 1249; passed U.S. House of Representatives on June 23, 2011; passed U.S. Senate on Sept. 8, 2011, at [http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR01249:@@@X].</ref> The Act was signed into law by President Barack Obama on September 16, 2011.<ref>Darlene Superville, "Obama signs Obama signs 1st major patent law change since 1952," Sept. 16, 2011, Associated Press, at [http://news.yahoo.com/obama-signs-1st-major-patent-law-change-since-153819335.html].</ref>
+On September 8, 2011, the [[United States Senate]] passed the ''[[Leahy-Smith America Invents Act]]'', which had already been passed by the [[United States House of Representatives|House of Representatives]]. The Act is described as "a comprehensive patent reform bill that includes language to stop the U.S [[United States Patent and Trademark Office|Patent and Trademark Office]] from issuing patents for tax strategy methods."<ref>"Statement from AICPA President and CEO Barry Melancon Praising Final Congressional Action on Bill to Stop Tax Strategy Patents," Sept. 8, 2011, American Institute of Certified Public Accountants, at [http://www.aicpa.org/Press/PressReleases/2011/Pages/BarryMelanconPraisingFinalCongressionalActiononBilltoStopTaxStrategyPatents.aspx].</ref><ref>See generally: Bill Summary and Status, Library of Congress, ''Leahy-Smith America Invents Act'', H.R. 1249; passed U.S. House of Representatives on June 23, 2011; passed U.S. Senate on Sept. 8, 2011, at [http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR01249:@@@X] {{Webarchive|url=https://web.archive.org/web/20141015082604/http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR01249:@@@X |date=2014-10-15 }}.</ref> The Act was signed into law by [[President Barack Obama]] on September 16, 2011.<ref>Darlene Superville, "Obama signs Obama signs 1st major patent law change since 1952," Sept. 16, 2011, Associated Press, at [https://news.yahoo.com/obama-signs-1st-major-patent-law-change-since-153819335.html].</ref><ref>Leahy-Smith America Invents Act, Pub. L. No. 112-29 (Sept. 16, 2011).</ref>
 Subsection (a) of section 14 of the Act provides (in part):
-::For purposes of evaluating an invention under section 102 or 103 of title 35, United States Code, any strategy for reducing, avoiding, or deferring tax liability, whether known or unknown at the time of the invention or application for patent, shall be deemed insufficient to differentiate a claimed invention from the prior art.<ref>Leahy-Smith America Invents Act, H.R. 1249, sec. 14(a).</ref>
+::For purposes of evaluating an invention under section 102 or 103 of [[title 35, United States Code]], any strategy for reducing, avoiding, or deferring tax liability, whether known or unknown at the time of the invention or application for patent, shall be deemed insufficient to differentiate a claimed invention from the prior art.<ref>Leahy-Smith America Invents Act, Pub. L. No. 112-29, sec. 14(a).</ref>
 Subsection (b) of section 14 provides (in part):
-::For purposes of this section, the term "tax liability" refers to any liability for a tax under any Federal, State, or local law, or the law of any foreign jurisdiction, including any statute, rule, regulation, or ordinance that levies, imposes, or assesses such tax liability.<ref>Leahy-Smith America Invents Act, H.R. 1249, sec. 14(b).</ref>
+::For purposes of this section, the term "tax liability" refers to any liability for a tax under any Federal, State, or local law, or the law of any foreign jurisdiction, including any statute, rule, regulation, or ordinance that levies, imposes, or assesses such tax liability.<ref>Leahy-Smith America Invents Act, Pub. L. No. 112-29, sec. 14(b).</ref>
 Subsection (c) of section 14 provides (in part):
-::This section does not apply to that part of an invention that [ . . .] is a method, apparatus, technology, computer program product, or system, that is used solely for preparing a tax or information return or other tax filing, including one that records, transmits, transfers, or organizes data related to such filing...<ref>Leahy-Smith America Invents Act, H.R. 1249, sec. 14(c).</ref>
+::This section does not apply to that part of an invention that [...] is a method, apparatus, technology, computer program product, or system, that is used solely for preparing a tax or information return or other tax filing, including one that records, transmits, transfers, or organizes data related to such filing...<ref>Leahy-Smith America Invents Act, Pub. L. No. 112–29, sec. 14(c).</ref>
-Subsection (e) of section 14 of the Act provides that the tax patent prohibition takes effect on the date of the enactment (September 16, 2011) and that it will apply "to any patent application that is pending on, or filed on or after, that date, and to any patent that is issued on or after that date."<ref>Leahy-Smith America Invents Act, H.R. 1249, sec. 14(e).</ref>
+Subsection (e) of section 14 of the Act provides that the tax patent prohibition takes effect on the date of the enactment (September 16, 2011) and that it will apply "to any patent application that is pending on, or filed on or after, that date, and to any patent that is issued on or after that date."<ref>Leahy-Smith America Invents Act, Pub. L. No. 112–29, sec. 14(e).</ref>
 ==References==
-{{reflist|2}}
+{{reflist|30em}}
-[[Category:Business law]]
 [[Category:United States patent law]]
-[[Category:Intellectual property law]]
 [[Category:Tax avoidance]]
 [[Category:Taxation in the United States]]
-[[ko:세금 특허]]