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On March 3, 1987, the Secretary promulgated section 1.927(a)-
1T(f)(3), Temporary Income Tax Regs., 52 Fed. Reg. 6463 (Mar. 3,
1987) (the temporary regulation), effective for taxable years
beginning after December 31, 1984. The preamble to the temporary
regulation states, in relevant part:
Section 1.927(a)-1T provides definitions
of export property for purposes of the FSC
rules. These definitions parallel in all
important respects the definitions of export
property of a DISC at �1.993-3. These
regulations at �1.927(a)-1T(f)(3) provide that
export property will include certain
standardized computer software on media that
are mass-marketed without the right to
reproduce for external use. * * * [Emphasis
added.]
52 Fed. Reg. 6433.
The temporary regulation provides:
(3) Intangible property. Export property
does not include any patent, invention, model,
design, formula, or process, whether or not
patented, or any copyright (other than films,
tapes, records, or similar reproductions, for
commercial or home use), goodwill, trademark,
tradebrand, franchise, or other like property.
Although a copyright such as copyright on a
book or computer software does not constitute
export property, a copyrighted article (such as
a book or standardized, mass marketed computer
software) if not accompanied by a right to
reproduce for external use is export property
if the requirements of this section are
otherwise satisfied. Computer software
referred to in the preceding sentence may be on
any medium, including, but not limited to,
magnetic tape, punched cards, disks, semi-
conductor chips and circuit boards. A license
of a master recording tape for reproduction
outside the United States is not disqualified
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