Examining the Intellectual Property-Relevant Provisions in the ‘Big Beautiful Bill’

By Editorial Team

As the "One Big Beautiful Bill Act" (OBBBA) moves to the Senate, stakeholders are urged to closely monitor its impact on innovation, intellectual property (IP) rights, and global market dynamics. The bill, which passed the House on May 22, 2025, contains various IP-related provisions within its 1,118 pages and 237,327 words.

Clean Tech Innovations

One provision eliminates the 2020 American Innovation and Manufacturing Act, aimed at phasing down hydrofluorocarbons to stimulate the invention of new substances and technologies eligible for patents.

AI Funding and Regulation

The bill allocates $500 million to the U.S. Department of Commerce for AI-related IT system modernization until 2035. It also imposes a 10-year ban on state and local governments regulating AI, with exceptions for existing laws that facilitate AI use.

Accounting and Valuation Standards

The bill merges the Public Company Accounting Oversight Board (PCAOB) into the Securities & Exchange Commission (SEC), raising concerns about potential degradation in IP valuation audits and international cooperation on IP standards.

Domestic R&D Deduction

The bill allows deductions for domestic research and experimental expenditures, suspending existing rules for amortization.

Sound Recordings Tax Benefits

Sound recording productions are now included in tax benefits previously limited to film, TV, and live theatrical productions.

Global Intangible Income Deduction

The bill extends 2017 tax law deductions for foreign-derived intangible income and global intangible low-taxed income, aiming to incentivize onshoring R&D and U.S. patents.

Copyright and Trademarks for Brands and Logos

The bill subjects revenue from the sale or licensing of names, logos, copyrights, or trademarks by nonprofits to taxation as unrelated business income.

Foreign Enemy Patents and Franchise Rights

The bill phases out credits for clean electricity production and tightens restrictions on using foreign enemy patents. It also limits the amortization of sports franchises and their intangible assets.

University Patent Licensing Income Tax

A new excise tax is imposed on income generated by colleges and universities from federally subsidized research and development, patents, copyrights, or other intellectual property.

The OBBBA's IP provisions raise concerns about IP valuation, audit integrity, and creator protections. Stakeholders must monitor the bill's impact on innovation and IP rights as it progresses through the Senate.