§ 1235. Sale or exchange of patents
(a)
General
A transfer (other than by gift, inheritance, or devise) of property consisting of all substantial rights to a patent, or an undivided interest therein which includes a part of all such rights, by any holder shall be considered the sale or exchange of a capital asset held for more than 1 year, regardless of whether or not payments in consideration of such transfer are—
(b)
“Holder” defined
For purposes of this section, the term “holder” means—
(c)
Effective date
This section shall be applicable with regard to any amounts received, or payments made, pursuant to a transfer described in subsection (a) in any taxable year to which this subtitle applies, regardless of the taxable year in which such transfer occurred.
(d)
Related persons
Subsection (a) shall not apply to any transfer, directly or indirectly, between persons specified within any one of the paragraphs of section
267
(b) or persons described in section
707
(b); except that, in applying section
267
(b) and (c) and section
707
(b) for purposes of this section—