House Passes Ban on Tax Strategy Patents

On September 7, 2007, by a vote of 220-175, the House passed patent reform legislation that includes a ban on tax strategy patents. The legislation would make a plan, strategy, technique or scheme to reduce, minimize, or defer a taxpayer’s tax liability unpatentable. Similar legislation focused on tax strategy patents has been introduced in the Senate. The Administration appears to support the provision with respect to tax strategy patents but has concerns with other aspects of the House-passed legislation.