IPR is only patents, copyrights, AND trademarks which are outlined in specific statutes---not the IRC.

Before evaluating the intellectual property tax scheme, it is useful to examine the nature of intellectual property rights. In American law, "intellectual property rights often cover . . . patents, copyrights, and trademarks."" In contrast to tangible property, which is visible and has physical existence, intellectual property is intangible and has no physical existence." Intangible intellectual property rights are separate from the physical objects containing the intellectual property. Ownership of a book, for example, does not mean ownership of the copyright of the book.

Patents and copyrights are substantively similar in many respects. Patents and copyrights are both intangible personal property." While neither has a physical form, both are generally dependent on physical forms for their creative existence.32 In addition, both confer similar exclusivity rights. Just as patent owners can exclude others from using, making, selling, or exporting their patented products," copyright owners enjoy the exclusive right to make copies, prepare derivative works, distribute the copyrighted work, and publicly perform and display the work.' The same clause of the U.S. Constitution empowers Congress to promote the progress of both science and the useful arts." In response, Congress has granted significant protections for both patents and copyrights.36

Copyrights include the exclusive rights to make copies, prepare derivative works, distribute the works, display the works in public, and perform the works in public." Copyright law requires that a work of authorship be original and fixed in a tangible medium of expression." Works of authorship cover a wide range of subject matters-for example, movies, video games, software, music, and books;" originality means that the works must be created independently by the author and must bear some degree of creativity." The bundle of rights does not last forever, however, as it faces a time limit.4' This time limitation is consistent with the Founding Fathers' intent in drafting the Patent and Copyright Clause. While the Founding Fathers clearly sought to award authors exclusive rights to their works-based on the belief that a reward-based system would "promote the Progress of Science and useful Arts""-they also understood that an unfettered right would do little to promote such cultural progress and therefore placed a time limit on the exclusivity for copyrights, the same as they did for patents.43

As with patents, the exclusive rights in copyrights, though limited in time, are granted to encourage the progress of science and the useful arts for the benefit of society." There is a long-held belief that copyright protection promotes innovation and the "creative activity of authors,"" and induces authors and artists to "release to the public . . . the products of his creative genius."" Technological advances in the reproduction and distribution of copyrighted works, however, force new changes in copyright law, as Congress continually searches for a balance between copyright protection" and future innovations.

Despite their similarities, there are many substantive differences between patents and copyrights. For example, the legal life of a patent is dictated by the federal patent statute and lasts twenty years from the date of patent application. The legal life of a copyright under the federal copyright statute is much longer; it spans the life of the original author plus seventy years after the author's death."9 If the author is an entity, the life of the copyright is 120 years from the date of creation or 95 years from the date of publication, whichever expires first.50

In contrast to patent and copyright laws, Congress relied on the Commerce Clause to pass the trademark statutes." Unlike patent and copyright laws, trademark laws do not exist to reward trademark owners for innovations of products or services.52 Rather, trademark laws are recognized as important to facilitate efficiency." Specifically, trademark laws prevent competitors from copying source-identifying marks and minimizing the likelihood of consumer confusion." Consumers can rely on the trademarks in their decision of whether to purchase a product or service." Consequently, trademark laws reduce the consumers' costs of shopping and making purchasing decisions and help assure "a producer that it (and not an imitating competitor) will reap the financial, reputation-related rewards associated with a desirable product."56