[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2365 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2365

   To amend title 35, United States Code, to limit damages and other 
       remedies with respect to patents for tax planning methods.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2007

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

_______________________________________________________________________

                                 A BILL


 
   To amend title 35, United States Code, to limit damages and other 
       remedies with respect to patents for tax planning methods.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LIMITATION ON DAMAGES AND OTHER REMEDIES WITH RESPECT TO 
              PATENTS FOR TAX PLANNING METHODS.

    (a) Limitation.--Section 287 of title 35, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d)(1) With respect to the use by a taxpayer or a tax 
practitioner of a tax planning method that constitutes an infringement 
under subsection (a) or (b) of section 271, the provisions of sections 
281, 283, 284, and 285 shall not apply against the taxpayer, the tax 
practitioner, or any related professional organization with respect to 
such tax planning method.
    ``(2) For the purposes of this subsection--
            ``(A) the term `tax planning method' means a plan, 
        strategy, technique, or structure 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 (as defined in 
        subsection (c)(2)(G)), county, city, municipality, or other 
        governmental levy, assessment, or imposition, whether measured 
        by income, value, or otherwise;
            ``(D) the term `tax practitioner' means any natural person 
        who provides advice and consultation to a taxpayer with respect 
        to a tax planning method or who is acting under the direction 
        of such person in connection with the development or use of a 
        tax planning method;
            ``(E) the term `related professional organization' means an 
        entity with which a tax practitioner has a professional 
        affiliation under which the tax practitioner may provide advice 
        and consultation with respect to a tax planning method, 
        including a law firm, accounting firm, or a bank; and
            ``(F) the term `professional affiliation' means an 
        employment or contractual relationship or partnership or other 
        ownership interest.''.
    (b) 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.
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