- 22 -
copyrighted article (such as a book) if not
accompanied by a right to reproduce it is
export property if the requirements of this
section are otherwise satisfied. However, a
license of a master recording tape for
reproduction outside the United States is not
disqualified under this subparagraph from being
export property.
Section 1.993-3(f)(3), Income Tax Regs., does not explicitly
refer to computer software. Consequently, the Commissioner’s
position with respect to whether computer software qualifies as
export property for DISC purposes was later expressed through the
following pronouncements: (1) Gen. Couns. Mem. (GCM) 39,449 (Feb.
17, 1983), concluded that mass-marketed software without
reproduction rights may qualify as export property under the DISC
rules as being akin to a copyrighted book; (2) Tech. Adv. Mem. (TAM)
85-49-003 (Aug. 16, 1985), concluded that standardized, mass-
marketed computer software without reproduction rights is section
993(c) export property; and (3) Priv. Ltr. Rul. (PLR) 86-52-001
(Sept. 3, 1986), concluded that exported computer software updates
that were not copyrighted would qualify for DISC benefits because
the property was sold without reproduction rights. (We recognize
that GCM’s, TAM’s, and PLR’s do not have the force of law and are
not binding on us. We mention these pronouncements merely to show
the manner in which the Commissioner interpreted and/or applied the
regulations.)
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011