Subject: Re: The term "intellectual property" considered useful
From: "Stephen J. Turnbull" <>
Date: Sat, 13 May 2006 01:10:34 +0900

>>>>> "Michael" == Michael Upchurch <> writes:

    Michael> Twenty years ago the Tennessee Supreme Court ruled that
    Michael> the software became tangible when the instructions were
    Michael> typed into a computer.  The case specifically concerned
    Michael> the application of sales tax to the process of
    Michael> fabrication of custom software.

Does this have any known implications, other than the government found
a way to tax a formerly untaxed activity without legislation?  (I mean
specifically has it been used as a precedent in other, non-tax cases.)

If all such "tangible software" were considered "real property", I
guess everybody who owns a copy of Quicken would be expected to pay
property tax on it?

How does Tennessee propose to value software distributed "on demand"
over the Internet for zero price for the purpose of such a property tax?

Graduate School of Systems and Information Engineering   University of Tsukuba        Tennodai 1-1-1 Tsukuba 305-8573 JAPAN
        Economics of Information Communication and Computation Systems
          Experimental Economics, Microeconomic Theory, Game Theory