By Xuan-Thao Nguyen and Jeffrey A. Maine

Intellectual property law serves a variety of societal goals, including fostering innovation and promoting economic and cultural development. While vital, however, intellectual property law alone cannot optimally achieve these widely shared goals. An important issue deserving scholarly attention concerns the proper role of the federal tax system in achieving intellectual property law’s innovation objectives. Most tax theorists would argue that an ideal tax system should seek to minimize the social costs of taxation and avoid unnecessarily shaping economic behavior. But it might be decided that the tax system should depart from these tax principles to further innovation. Of course, tax rules that deliberately attempt to reward creative process and further innovation must provide certainty, clarity, and dependability necessary for compliance with, and sound administration of, the law. To do that, the rules must necessarily recognize changes in innovation and reflect the realities of today’s economy.

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Recommended Citation
Xuan-Thao Nguyen, et al., The History of Intellectual Property Taxation: Promoting Innovation and Other Intellectual Property Goals, 64 SMU L. Rev. 795 (2011)