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under this paragraph from being export
property.
(The emphasized portions reflect additions or changes from the
language of section 1.993-3(f)(3), Income Tax Regs.)
Following the promulgation of the temporary regulation, the
Commissioner issued the following: (1) PLR 92-100-15 (Mar. 6, 1992)
concluded that even though the software therein was not subject to
a copyright, the license agreement restricted its use and
reproduction, qualifying it as export property; (2) PLR 93-440-02
(May 27, 1993) concluded that a master computer disk provided to
distributors, accompanied by a right to reproduce, is not export
property; also, “tapes” in the parenthetical refers to audio or
video tapes used in the entertainment industry and does not apply
to magnetic tapes used in the computer software industry; and (3)
TAM 93-44-002 (May 27, 1993) concluded that “computer software
conveyed through a licensing agreement that gives the licensee the
right to reproduce the software is excluded from the term ‘export
property’”. Also, the technical advice memorandum reflected that
the temporary regulation limited the reproduction exclusion of
section 927(a)(2)(B) to reproductions used solely in the
entertainment industry, stating, in relevant part:
The parenthetical exception in section
927(a)(2)(B) of the Code and section 1.927(a)-
1T(f)(3) of the regulations, which is identical
to and based on the parenthetical exception in
section 993(c)(2)(B) should also be interpreted
to include only audio or video tapes used in
the entertainment industry and not magnetic
computer software tapes.
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