Intellectual Property - AIA Series
The America Invents Act (AIA) continues the legislative attack
on tax strategy and business method patents. More than ten years
ago, Congress took its first swipe at business method patents by
creating a prior-user defense to infringement of such patents.
Congress has now created a new procedure for attacking existing
business method patents within the U.S. Patent and Trademark Office
(PTO), and a heightened patentability standard for inventions
involving tax strategies.
Tax Strategies
The AIA aims to prevent patents broadly covering tax strategies.
The AIA does not expressly prohibit tax strategy patents. Rather,
the AIA provides that, for purposes of determining novelty and
non-obviousness, "any strategy for reducing, avoiding, or
deferring tax liability [referred to as a "tax
strategy"], whether known or unknown at the time of the
invention or application for patent, shall be deemed insufficient
to differentiate a claimed
