SALE OR EXCHANGE OF PATENTS.

SEC. 54. SALE OR EXCHANGE OF PATENTS. (a) Application In Case of Related Persons.—Section 1235 (d) (relating to sale or exchange of patents between related persons) is amended to read as follows: “(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); except that, in applying section 267 (b) and (c) for purposes of this section— “(1) the phrase ‘25 percent or more’ shall be substituted for the phrase ‘more than 50 percent’ each place it appears in section 267 (b), and “(2) paragraph (4) of section 267 (c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants.” (b) Effective Date.—The amendment made by subsection (a) shall apply with respect to taxable years ending after the date of the enactment of this Act, but only with respect to transfers after such date. 72 Stat. 1645