H.R. 1249: Tax Patent Ban

On September 8, the Senate passed H.R. 1249, the America Invents Act, which would prohibit the patenting of tax strategies.  Section 14 of the 152 page Bill addresses tax patents, treating any strategy for reducing, avoiding, or deferring tax liability as deemed “insufficient to differentiate a claimed invention from the prior art.”  The legislation would be effective upon enactment and would apply to any patent application pending, and any patent issued, on or after enactment.  It is reported that the patent office has issued over 150 tax strategy patents and that more than 160 such patents are pending.