Page 223

107 STAT. 534 PUBLIC LAW 103-66—AUG. 10, 1993 "(E) any covenant not to compete (or other arrangement to the extent such arrangement has substantially the same effect as a covenant not to compete) entered into in connec- tion wiUi an acquisition (directly or indirectly) of an interest in a trade or business or substantial portion thereof, and "(F) any franchise, trademark, or trade name. **(2) CUSTOMER-BASED INTANGIBLE.— "(A) IN GENERAL.—^The term 'customer-based intangi- ble' means— "(i) composition of market, "(ii) market share, and "(iii) any other value resulting from future provi- sion of goods or services pursuant to relationships (contractual or otherwise) m the ordinary course of business with customers. "(B) SPECIAL RULE FOR FINANCIAL INSTITUTIONS.—In the case of a financial institution, the term 'customer- based intangible' includes deposit base and similar items. "(3) SUPPLIER-BASED INTANGIBLE.—The term 'supplier- based intangible' means any value resulting fii^m future acquisitions of goods or services pursuant to relationships (contractual or otherwise) in the ordinary course of business with suppliers of goods or services to be used or sold by the t€ucpayer. "(e) EXCEPTIONS.—^For purposes of this section, the term 'section 197 intangible' shall not include any of the following: "(1) FINANCIAL INTERESTS.—Any interest— "(A) in a corporation, partnership, trust, or estete, or "(B) under an existing futures contract, foreign cur- rency contract, notional principal contract, or other similar financial contract. "(2) LAND.—Any interest in land. "(3) COMPUTER SOFTWARE.— "(A) IN GENERAL.—Any— "(i) computer software which is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substentially modified, and "(ii) other computer software which is not acquired in a transaction (or series of related transactions) involving the acquisition of assete constituting a trade or business or substantial portion thereof. "(B) COMPUTER SOFTWARE DEFINED.—For purposes of subparagraph (A), the term 'computer software' means any program designed to cause a computer to perform a desired function. Sudi term shall not include any date base or similar item unless the date base or item is in the public domain and is incidentel to the operation of otherwise qualifying computer software. 'X4) CERTAIN INTERESTS OR RIGHTS ACQUIRED SEPA- RATELY.—Any of the following not acauired in a transaction (or series of related transactions) involving the acquisition of assete constituting a trade business or substantial portion thereof: "(A) Any interest in a film, sound recording, video tepe, book, or similar property.