I 

111TH CONGRESS 

1ST SESSION H. R. 2584 

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

planning methods. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2009 

Mr. BOUCHER (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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. TAX PLANNING METHODS NOT PATENTABLE. 

4 (a) IN GENERAL.—Section 101 of title 35 (35 U.S.C. 

5 101) is amended— 

6 (1) by striking ‘‘Whoever’’ and inserting ‘‘(a) 

7 PATENTABLE INVENTIONS.—Whoever’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(b) TAX PLANNING METHODS.— 


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1 ‘‘(1) UNPATENTABLE SUBJECT MATTER.—A 

2 patent may not be obtained for a tax planning meth3 od. 

4 ‘‘(2) DEFINITIONS.—For purposes of paragraph 

5 (1)— 

6 ‘‘(A) the term ‘tax planning method’ 

7 means a plan, strategy, technique, or scheme 

8 that is designed to reduce, minimize, or defer, 

9 or has, when implemented, the effect of reduc10 ing, minimizing, or deferring, a taxpayer’s tax 

11 liability, but does not include the use of tax 

12 preparation software or other tools used solely 

13 to perform or model mathematical calculations 

14 or prepare tax or information returns; 

15 ‘‘(B) the term ‘taxpayer’ means an indi16 vidual, entity, or other person (as defined in 

17 section 7701 of the Internal Revenue Code of 

18 1986) that is subject to taxation directly, is re19 quired to prepare a tax return or information 

20 statement to enable one or more other persons 

21 to determine their tax liability, or is otherwise 

22 subject to a tax law; 

23 ‘‘(C) the terms ‘tax’, ‘tax laws’, ‘tax liabil24 ity’, and ‘taxation’ refer to any Federal, State, 

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1 mental levy, assessment, or imposition, whether 

2 measured by income, value, or otherwise; and 

3 ‘‘(D) the term ‘State’ means each of the 

4 several States, the District of Columbia, and 

5 any commonwealth, territory, or possession of 

6 the United States.’’. 

7 (b) APPLICABILITY.—The amendments made by this 

8 section— 

9 (1) shall take effect on the date of the enact10 ment of this Act; 

11 (2) shall apply to any application for patent or 

12 application for a reissue patent that is— 

13 (A) filed on or after the date of the enact14 ment of this Act; or 

15 (B) filed before that date if a patent or re16 issue patent has not been issued pursuant to 

17 the application as of that date; and 

18 (3) shall not be construed as validating any pat19 ent issued before the date of the enactment of this 

20 Act for an invention described in section 101(b) of 

21 title 35, United States Code, as amended by this 

22 section. 

23 (c) EFFECTIVE DATE.—The amendment made by 

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1 ment of this Act and shall apply to any action for patent 

2 infringement that is filed on or after that date. 

Æ 


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