Whether attorney fees incurred in defending against a false criminal claim intended to steal intellectual property are deductible business expenses under 26 U.S.C. § 162(a)

QUESTION PRESENTED American intellectual property and inventions are being stolen and taken to foreign countries at catastrophic rates, an estimated $600 billion each year. Petitioner William French Anderson (“Anderson”) is a pioneer geneticist who created the field of gene therapy. He invented and patented a revolutionary cancer drug that treats the damaging side effects of radiation and chemotherapy, which greatly improves the cure rates for all types of cancer. His invention has been valued at $9 billion. It was stolen and taken to China using a false criminal claim as the vehicle to do it. Anderson exercised his Sixth Amendment right to counsel, and the Tenth Circuit Court of Appeals became the first court in the country to rule that Anderson’s attorney fees associated with the theft of his invention were not deductible business expenses. The question presented is: Whether Anderson’s attorney fees incurred in defense of a false criminal claim that was brought by his former business partner turned competitor and false accuser as the vehicle to steal his invention, trade secrets and intellectual property on a $9 billion cancer drug; to remove him (and silence him) from the business competition to bring this cancer drug to market; and to take his invention, trade secrets and intellectual property to China in violation of the Economic Espionage Act, are deductible business expenses under 26 U.S.C. § 162(a) and Commissioner v. Tellier, 383 U.S. 687 (1966).