I 
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 plan-
ning methods. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. LIMITATION ON DAMAGES AND OTHER REM-
EDIES 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 fol-
lowing new subsection: 
‘‘(d)(1) With respect to the use by a taxpayer or a 
tax practitioner of a tax planning method that constitutes 
VerDate Aug 31 2005 
03:42 May 19, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2365.IH
H2365
jcorcoran on PROD1PC65 with BILLS
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 de-
signed to reduce, minimize, or defer, or has, when 
implemented, the effect of reducing, minimizing or 
deferring, a taxpayer’s tax liability, but does not in-
clude 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 sub-
ject 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 de-
fined in subsection (c)(2)(G)), county, city, munici-
pality, or other governmental levy, assessment, or 
VerDate Aug 31 2005 
03:42 May 19, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2365.IH
H2365
jcorcoran on PROD1PC65 with BILLS
imposition, whether measured by income, value, or 
otherwise; 
‘‘(D) the term ‘tax practitioner’ means any nat-
ural 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 organiza-
tion’ 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 part-
nership or other ownership interest.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date of the enact-
ment of this Act and shall apply to any action for patent 
infringement that is filed on or after that date. 
Æ 
VerDate Aug 31 2005 
03:42 May 19, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6301
E:\BILLS\H2365.IH
H2365
jcorcoran on PROD1PC65 with BILLS