Sec. 3315. Treatment of patent or trademark infringement awards

206 words·~1 min read·/bill/113/hr/1/ih/section-3315

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Part II of subchapter B of chapter 1 is amended by adding at the end the following new section: Except as provided in subsection (b), any payment received for infringement of any patent or trademark (whether by reason of judgment or settlement) shall be included in gross income as ordinary income. If the taxpayer demonstrates to the satisfaction of the Secretary that a payment described in subsection

(a)constitutes damages received by reason of the reduction in value of property of the taxpayer caused by the infringement referred to in subsection (a)— the taxpayer’s basis in such property shall be reduced (but not below zero) by the amount of such payment, and subsection

(a)shall apply to so much of such payment as exceeds the amount of the reduction under paragraph (1). . Section 1016(a) is amended by adding at the end the following new paragraph: to the extent provided in section 91(b)(1), . The table of sections for part II of subchapter B of chapter 1 is amended by adding at the end the following new item: Sec. 91. Patent or trademark infringement awards. . The amendments made by this section shall apply to payments received pursuant to judgments and settlements after December 31, 2014.