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IRS concludes attorney fees related to generic drug patent infringement lawsuits must be capitalized

  • Winston & Strawn LLP
  • -
  • USA
  • -
  • January 24 2012

In a recent Chief Counsel Memorandum (“CCM”), the Internal Revenue Service (the “IRS”) concluded (contrary to an established industry custom) that attorney fees incurred for investigatory patent research and to defend actions for patent infringement in connection with the filing of abbreviated new drug applications (“ANDAs”) were not deductible and instead must be capitalized